What are 'Competitive Services' as defined in the Aplus Franchise Agreement?

According to Aplus's 2024 Franchise Disclosure Document, 'Competitive Services' are defined as full-line retail grocery convenience stores and/or gasoline fueling stations, or other services that are the same as or similar to those provided by Aplus and Sunoco businesses. This definition also includes services in which trade secrets or other confidential information could be used to the disadvantage of Aplus, its affiliates, or its other franchisees.

This definition is important for prospective franchisees because it outlines the types of businesses that Aplus would consider competitive, which could impact a franchisee's ability to engage in other business ventures during the term of the franchise agreement. The definition is broad, encompassing not only direct competitors like other convenience stores and gas stations but also any business where Aplus's confidential information could be used to its detriment.

The Aplus franchise agreement does provide exceptions to the definition of 'Competitive Business'. The term does not apply to any business operated by the franchisee under a franchise agreement with Aplus, or any business operated by a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest.

It is crucial for potential Aplus franchisees to fully understand this definition and its implications, as it could restrict their business activities and investments outside of their Aplus franchise. Franchisees should seek clarification from Aplus regarding any business ventures they are considering to ensure they do not violate the terms of the franchise agreement.