What is the condition for the Aplus sale of convenience stores to 7-Eleven, Inc. to close?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
roximately 9,500 miles of pipeline and 63 terminal and storage facilities that store and distribute crude oil, refined products, renewable fuels, ammonia and specialty liquids. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions.
On January 11, 2024, we entered into a definitive agreement with 7-Eleven, Inc. to sell 204 convenience stores located in West Texas, New Mexico, and Oklahoma for approximately $1.0 billion, including customary adjustments for fuel and merchandise inventory.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the sale of 204 convenience stores to 7-Eleven, Inc. is expected to close upon two conditions. These conditions are the receipt of regulatory approvals and the satisfaction of customary closing conditions. The agreement, which was made on January 11, 2024, involves stores located in West Texas, New Mexico, and Oklahoma, and is valued at approximately $1.0 billion, including adjustments for fuel and merchandise inventory.
This information is relevant for prospective Aplus franchisees as it provides insight into the company's strategic decisions and financial transactions. The sale of these stores to 7-Eleven, Inc. may impact the Aplus brand's presence and operations in certain regions. Additionally, the amendment of the fuel supply agreement with 7-Eleven, Inc. to incorporate additional fuel gross profit could affect the supply chain and profitability of Aplus franchisees who also operate Sunoco fueling stations.
It is important for potential franchisees to understand the implications of such transactions on the overall franchise system. While the FDD provides this information, it does not elaborate on what constitutes 'regulatory approvals' or 'customary closing conditions.' Therefore, prospective franchisees should seek clarification from Aplus regarding the specific requirements and potential timelines associated with these conditions to better assess the stability and future direction of the Aplus franchise.