What conditions must be met for Aplus owners to transfer their ownership interests among each other?

According to Aplus's 2024 Franchise Disclosure Document, if the franchisee is a business entity, the owners may transfer their ownership interests in the business entity among each other if certain conditions are met.

First, Aplus requires advance notice of the transfer. Second, Attachment C to the Development Agreement must be amended to reflect the new ownership structure. Third, each new owner must sign a Guaranty and Personal Undertaking in the form of Attachment D. Fourth, each previous and/or new owner must sign a general release in favor of Aplus in the form that Aplus requires. Finally, the franchisee must pay Aplus a $2,500 administrative fee.

It is important to note that these conditions apply specifically to transfers of ownership interests among existing owners of a business entity that is a franchisee. Transfers of a controlling interest or transfers to outside parties are subject to different and potentially more stringent requirements, as outlined elsewhere in the Development Agreement. A "Non-Controlling Interest" is defined as any interest less than 51% of the corporation, limited liability company, or partnership.