What constitutes a material default by an Aplus franchisee under the terms of the Agreement regarding insurance?

According to Aplus's 2024 Franchise Disclosure Document, a franchisee's failure to procure or maintain insurance as specified in Section 15 of the Franchise Agreement constitutes a curable default. If the franchisee fails to remedy this situation within ten days after receiving written notice of the default, Aplus has the right to terminate the agreement.

This means that maintaining the required insurance coverage is a critical obligation for Aplus franchisees. Failure to do so not only puts the franchisee at risk but also gives Aplus the right to terminate the franchise agreement if the franchisee does not obtain or reinstate the required insurance within the specified timeframe.

It is important for prospective Aplus franchisees to carefully review Section 15 of the Franchise Agreement to understand the specific insurance requirements, including the types of coverage, policy limits, and any other conditions. Franchisees should also ensure they have a system in place to track insurance policies and renewal dates to avoid any lapses in coverage that could lead to a default.