How does Aplus define an 'Approved Supplier'?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
andise options subject to our prior approval.
We will approve suppliers, which may be us or our affiliates, manufacturers, distributors, and other sources who demonstrate to our continuing, reasonable satisfaction the ability to meet our uniform standards and specifications and who possess adequate quality controls and capacity to supply your needs promptly and reliably ("Approved Suppliers").
We will provide you a list of Approved Suppliers that will be incorporated in the Systems Manual. We will remove the status of a previously Approved Supplier by notifying you in writing of the revocation and the reasons for the revocation. We may also require you to purchase certain items and services only from specific suppliers designated by us ("Designated Specific Suppliers"). We reserve the right to require your purchases from Approved Suppliers or Designated Specific Suppliers be made through a buying group administered by us or our third-party designee.
For goods and services that you are not required to purchase from an Approved Supplier, you may select any supplier at your discretion. However, we determine that a particular supplier does not meet our quality standards, including the favorable public image of the APLUS Program, we will notify you in writing and you must promptly discontinue purchasing from that supplier. At our discretion, Approved Suppliers may also make their products and services available to SUNOCO franchisees.
If you desire to purchase any of the items specified in this Item 8 from a supplier that is not an Approved Supplier, you or the supplier must submit to us a written request for approval. We have sole discretion over the approval of such suppliers. At a minimum they must demonstrate the ability to meet our standards and specifications and possess adequate quality controls and capacity to supply your needs promptly and reliably. We may inspect the proposed supplier's facilities, and require that we receive samples from the proposed supplier for testing prior to granting or denying approval. We may impose a charge that does not exceed the reasonable costs of our inspection and testing. This charge may be paid by you or the proposed supplier. We may re-inspect the facilities and products of any supplier at any time, and may revoke the prior approval if we determine that the supplier does not meet the quality standard that is consistent with the favorable public image of the APLUS Program. The APLUS Agreement imposes no time period in which we are required to exercise our right of approval or disapproval. All suppliers approved by us are required to sign an agreement indemnifying us for the supplier's products, actions andservices.
We reserve the right to establish maximum retail prices, subject to law, for certain convenience store products, specified by us, and for participation in certain APLUS promotions prices must be consistent with the advertised price. If you operate a Captive Market APLUS Store, you may be subject to any pricing constraints applicable to the concession and/or lease agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, an 'Approved Supplier' is defined as suppliers, manufacturers, distributors, or other sources that Aplus deems capable of consistently meeting their standards and specifications. These suppliers must also demonstrate adequate quality controls and the capacity to reliably and promptly fulfill the needs of Aplus franchisees. Approved Suppliers may include Aplus itself or its affiliates. Aplus will provide a list of these Approved Suppliers in the Systems Manual.
Prospective Aplus franchisees should understand that Aplus retains the right to remove a supplier from the approved list, provided they give written notice explaining the reasons for the revocation. Aplus may also designate specific suppliers from whom franchisees must purchase certain items and services. For goods and services not mandated to be purchased from Approved Suppliers, franchisees have the discretion to choose their own suppliers. However, Aplus reserves the right to disapprove any supplier that does not meet their quality standards or align with the Aplus brand image, requiring franchisees to discontinue purchasing from them.
If a franchisee wishes to use a supplier that is not on the Approved Supplier list, they must submit a written request for approval to Aplus. The supplier must demonstrate the ability to meet Aplus's standards, quality controls, and capacity requirements. Aplus has the right to inspect the supplier's facilities and request samples for testing, with the franchisee or supplier potentially bearing the costs of inspection and testing. Aplus can also re-inspect approved suppliers at any time and revoke approval if the supplier no longer meets Aplus's quality standards. All approved suppliers must sign an agreement indemnifying Aplus for the supplier's products, actions, and services.
During the term of the franchise agreement, Aplus may implement a buying group that requires franchisees to purchase up to 90% of their total inventory and up to 90% of their cigarette purchases from Approved Suppliers or Designated Specific Suppliers. Purchases from non-approved suppliers will not count towards this requirement. The cost value used to calculate these percentages will only include the cost reflected on vendor invoices, excluding any allowances, rebates, and discounts not reflected on vendor invoices. To count toward the Approved Vendor Purchase Requirement, the products must be ordered and paid for through Aplus's recommended method for ordering and paying that vendor.