What contracts and agreements related to the sale of the Aplus Store must be provided to the franchisor?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| | | 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 | | 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.
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, if a franchisee intends to transfer ownership of their Aplus Store, they must provide Aplus with a complete copy of all contracts, agreements, and related documents concerning the sale of the Aplus Store to the prospective transferee. This requirement ensures that Aplus has full visibility into the terms of the proposed transfer.
Additionally, Aplus retains the right of first refusal to acquire the franchisee's business. To facilitate this, the franchisee must provide Aplus with a copy of the proposed purchase contract when notifying Aplus of a pending 100% transfer. This notification must occur at least 60 days before the intended transfer date, allowing Aplus adequate time to evaluate the offer and decide whether to exercise its right of first refusal.
These provisions enable Aplus to maintain control over its brand and network by carefully reviewing and potentially intervening in proposed transfers. For a prospective franchisee, this means understanding that any sale of their Aplus business is subject to Aplus's review and approval, and that Aplus has the option to purchase the business themselves under the same terms offered to a third party, less any transfer fees.