Can the Aplus Development Agreement term be renewed or extended?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Development Agreement | |||
| a. Length of the Agreement term | Section 2.1 | The period beginning on the effective date and ending on the earlier of: (i) the date on which you have completed your development obligations, or (ii) 12:00 midnight CST on the last day specified in the development schedule. | |
| b. Renewal or extension of the | No provision | Not applicable. | |
| term | |||
| c. Requirements for Developer | No provision | Not applicable | |
| to renew or extend |
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, the Development Agreement term cannot be renewed or extended. The agreement's length is defined as the period starting from the effective date and ending either when the development obligations are completed or at 12:00 midnight CST on the last day specified in the development schedule, whichever comes first.
Since there is no provision for renewal or extension, a prospective Aplus developer should be aware that their rights to develop new Aplus stores in the designated area will cease at the end of the initial term. This means that if the developer wants to continue expanding after the initial term, they would likely need to negotiate a new development agreement with Aplus, which may or may not be granted.
This lack of renewal option is a significant point for potential developers to consider, as it impacts their long-term growth strategy and relationship with the Aplus franchise. It is important to fully understand the development schedule and obligations to maximize the development rights within the initial agreement term. A prospective franchisee should discuss with Aplus what factors might influence the decision to offer a new development agreement at the end of the initial term.