Where is the development area specified in the Aplus Development Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the development agreement, we grant you the right to develop and operate a specified number of APLUS Stores at sites in a specified development area. The development area will be identified on Attachment B to the development agreement and may be described in terms of cities, counties, states, or some other designation.
We reserve to ourselves all other rights, including the right to own and operate and to grant others the right to own and operate APLUS Stores outside the development area, regardless of their proximity to the development area, and in "Captive Markets" located within and outside the development area. We also have the right to distribute products and services identified by the Marks, such as pre-packaged products, through alternative channels of distribution including the Internet. We are not required to compensate you if we exercise any of the rights specified above inside your development area.
Source: Item 12 — TERRITORY (FDD page 47)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, the specific development area granted to a franchisee under a Development Agreement is identified on Attachment B of that agreement. The FDD states that this area may be defined using cities, counties, states, or other designations.
It is important to note that Aplus does not grant exclusive development areas. The franchisor retains the right to allow third parties or affiliates to operate other Aplus stores within the franchisee's development area. Aplus also reserves the right to operate stores and license the use of its marks in "Captive Markets" both inside and outside the development area, as well as distribute products and services through alternative channels like the Internet, without compensating the franchisee.
Furthermore, Aplus is not restricted from developing other businesses under different trademarks, even if they compete with Aplus stores. This means that a franchisee's development area could potentially face competition from other businesses owned or franchised by Aplus or its affiliates. Prospective franchisees should carefully review Attachment B of the Development Agreement and understand the extent of the territory granted, as well as the potential for competition within that area.