Is completion of the then-current initial training required for the transferee of an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
e, and any other required documents; (vi) you |
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| have provided us a complete copy of all | ||
| contracts, agreements, and related documents | ||
| concerning the sale of the APLUS Store from | ||
| you | ||
| to transferee; (vii) your or transferee has | ||
| paid us the applicable Transfer Fee; (viii) | ||
| transferee has obtained all necessary consents | ||
| and approvals from third parties to operate | ||
| the APLUS Store; (ix) the transferee | ||
| Designated Manager completes our required | ||
| initial training; (x) transferee provides proof | ||
| of U.S. citizenship or permanent legal | ||
| residency status; and (xi) transferee has | ||
| completed our then-current financial | ||
| application, and initial training. | ||
| n. Franchisor's right of first refusal to acquire franchisee's business | APLUS - 19 Premises - 2.22 | Within 60 days after receiving your notice of a pending 100% transfer, which must include a copy of the proposed purchase contract, we have the option to either notify you that (i) we decline to exercise our right of first refusal, or (ii) we will match the offer on the same terms and conditions contained in the offer. Except however, we have the right to deduct the amount of the transfer fee from the offering price, and payment of any brokerage fee is your responsibility. In the event we decline and the original purchase offer is materially changed prior to closing, you must provide us with the new terms and we will have 60 days in which to notify you if we elect to continue to decline or if we elect to match the new offer. |
| o. Franchisor's option to purchase franchisee's business | APLUS – 17.4 | Within 60 days after termination or expiration of the franchise agreement, we have the option to purchase any of the assets of the APLUS Store at fair market value, as determined by an independent appraiser. |
| p. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–64)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a transferee of an Aplus franchise must complete the then-current initial training. Specifically, the transferee must meet Aplus's requirements for a franchisee at the time of the transfer.
For Aplus to approve a transfer, the listed conditions must be met. One of these conditions is that the transferee has completed Aplus's then-current financial application and initial training.
In the event of death, disability, or incapacity of the franchisee or a controlling owner, the appointed representative must transfer ownership to a successor approved by Aplus. This successor must complete Aplus's initial training program to Aplus's satisfaction before assuming the Aplus Franchise Agreement and related agreements. This transfer should occur within 180 days, during which time a Designated Manager is required to manage the Aplus store.