What is the consequence if an Aplus franchisee fails to maintain required professional licenses, permits, and certifications for more than five business days?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
as defined in the APlus Franchise Agreement upon termination of the APlus Franchise Agreement.
Nonperformance
(F) In addition to any other remedies Sunoco may have, you hereby agree that if you fail to perform your obligations hereunder and fail to correct such default within five (5) days after receipt from Sunoco of notice thereof, Sunoco may perform or have performed your obligations as are necessary to correct such default. Any costs to Sunoco or payments by Sunoco incurred for such items and such costs shall be deemed additional charges pursuant to
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee fails to perform their obligations and does not correct the default within five days after receiving notice from Sunoco, Sunoco has the option to perform the franchisee's obligations to correct the default. Any costs or payments Sunoco incurs to correct the default will be considered additional charges to the franchisee.
This means that if an Aplus franchisee fails to maintain the necessary operational and professional licenses, permits, and certificates, Sunoco can step in to rectify the situation after a five-day notice period. The franchisee will then be responsible for covering any expenses Sunoco incurs in obtaining or reinstating these required documents.
This clause protects Sunoco by ensuring the Aplus store remains compliant with all applicable laws and regulations, even if the franchisee fails to do so. However, it also places a financial burden on the franchisee, who will be responsible for reimbursing Sunoco for any costs incurred in correcting the franchisee's failure to maintain the necessary licenses and permits. Franchisees should ensure they have systems in place to track and maintain all required licenses and permits to avoid these additional charges.