What costs is an Aplus franchisee responsible for if they make unauthorized alterations or modifications to the premises?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
vending machines in restrooms and repairs to or replacements of walls or partitions that have been damaged by the installation and removal of any such unauthorized vending machines.
(C) You hereby agree that, if you fail to perform your obligations under this subsection and Section 2.12 of this Lease and fail to correct such default within five (5) days after receipt from Sunoco of notice thereof, Sunoco may perform or have performed such obligations of you by a janitorial service or such other contractors as are deemed necessary by Sunoco to correct such default. Any costs so incurred by Sunoco shall be deemed additional charges pursuant to Section 2.05(D).
1.23 Alterations to Premises and the Installation of Equipment
- (A) (1) Except with prior written consent of Sunoco, you shall not make additions, alterations, or changes to the Premises, nor erect or add any buildings or other enclosures on the Premises. Additions or alterations made to the Premises by you with the prior written consent of Sunoco shall be performed in a good and workmanlike manner in accordance with Sunoco's engineering standards.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are generally prohibited from making any alterations to the premises without the prior written consent of Sunoco. If a franchisee does make unauthorized alterations, they are responsible for the costs associated with correcting those alterations.
Specifically, if a franchisee fails to perform their obligations under the franchise agreement and does not correct the issue within five days of receiving notice from Sunoco, Sunoco has the right to perform the necessary actions to correct the default. The franchisee is then responsible for any costs or payments incurred by Sunoco to rectify the situation. These costs are considered additional charges and are due within five days of demand from Sunoco.
This means that an Aplus franchisee needs to be extremely careful to obtain written permission before making any changes to the store premises. Failure to do so could result in unexpected expenses if Sunoco determines that the alterations are not in compliance with their standards and requires the franchisee to restore the premises to its original condition or to a condition that meets Sunoco's requirements. This could involve significant costs, depending on the nature and extent of the unauthorized alterations.