Who designates the approved suppliers for the Aplus Store Equipment that the franchisee must purchase and install?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
se sites for your consideration, you understand that ultimate site selection is solely your choice and your responsibility. If an acceptable site is not found by the Franchisee and approved by the Franchisor within ninety (90) days of the Effective Date, then Franchisor reserves the right to terminate this Agreement. Franchisor may utilize a Designated Service Provider to perform any of its duties under this Section 5.1 and Section 5 generally.
5.2. Development of the APLUS Store
- 5.2.1. Prior to the Commencement Date and at the direction of Franchisor, Franchisee, at Franchisee's expense, will obtain and install certain APLUS Store equipment designated by Franchisor (the "Store Equipment"). The Store Equipment must meet all of our specifications and requirements and must be purchased from suppliers approved or designated by Sunoco. You will adhere to all ongoing security, maintenance, and upgrade requirements of the Store Equipment as directed by Franchisor during the term of this Agreement. No Store Equipment owned by you or leased from a third party may be installed or used at the Store without our prior written consent.
- 5.2.2. If applicable, Sunoco will furnish and install other certain APLUS store equipment that
Sunoco loans to you as part of this Agreement (the "Loaned Store Equipment"). You agree to execute such documentation as Sunoco may require to effectuate the lease terms, installation, and ongoing maintenance, and upgrade requirements for the Loaned Store Equipment.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee is required to obtain and install Aplus Store equipment designated by Aplus. This equipment must meet Aplus's specifications and requirements and must be purchased from suppliers approved or designated by Sunoco. Additionally, the franchisee must adhere to all ongoing security, maintenance, and upgrade requirements for the Store Equipment as directed by Aplus during the term of the Franchise Agreement. The franchisee cannot install or use any store equipment that they own or lease from a third party without prior written consent from Aplus.
This means that as a prospective Aplus franchisee, you do not have the freedom to choose your own equipment suppliers. Instead, you are limited to using only those suppliers that have been pre-approved or specifically designated by Sunoco. This requirement ensures uniformity and quality control across all Aplus franchise locations, but it also means you may not be able to negotiate better deals with other suppliers or use equipment you might already own.
Furthermore, Aplus retains the right to review and revoke its approval of any items or suppliers at any time by notifying the franchisee. If Aplus disapproves of a previously approved item or service, the franchisee must promptly stop using, selling, or providing it at their own expense. This clause gives Aplus significant control over the franchisee's operations and requires the franchisee to remain flexible and adaptable to changes in approved suppliers and equipment.
While Aplus approves the products, suppliers, or services, neither Aplus nor its affiliates provide any warranties, including merchantability for any particular purpose, regarding fixtures, furniture, equipment, computer systems, supplies, or other approved items. Therefore, the franchisee bears the risk of any defects or issues with the equipment and supplies purchased from approved suppliers.