Does the definition of 'Competitive Services' for an Aplus franchise include full-line retail grocery convenience stores?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Competitive Services" means full-line retail grocery convenience store and/or gasoline fueling station or other services the same as or similar to those provided by APLUS and/ SUNOCO businesses or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or its other franchisees.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the definition of 'Competitive Services' does include full-line retail grocery convenience stores. This means that Aplus considers such stores to be in direct competition with Aplus franchises.
This definition has implications for franchisees, particularly regarding their ability to engage in other business ventures. The FDD specifies that a 'Competitive Business' is any business that offers 'Competitive Services.' However, this restriction does not apply to businesses operated under a franchise agreement with Aplus or businesses operated by a publicly-held entity in which the franchisee owns less than a 5% interest.
Therefore, franchisees need to be aware of this definition and its implications for any other business interests they may have or plan to pursue. Any business offering services similar to those of Aplus, including full-line retail grocery convenience stores, could be considered a conflict of interest unless it falls under the exceptions mentioned in the franchise agreement.