How is the Aplus development area specified in the 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 Aplus's 2024 Franchise Disclosure Document, the development agreement grants the franchisee the right to develop and operate a specified number of Aplus stores within a defined development area. This development area is detailed in Attachment B of the development agreement and can be described using cities, counties, states, or other designations.
However, the Aplus franchise is non-exclusive, meaning franchisees will not receive an exclusive territory or any protected territory. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by Aplus, including area representatives who may sell Aplus store franchise opportunities. Aplus also retains the right to operate company-owned stores in close proximity to franchisee locations, even under the Aplus trademark or other marks.
Furthermore, Aplus reserves all rights outside the development area, including the right to own, operate, and grant others the right to operate Aplus stores, regardless of their proximity to the development area. Aplus also retains the right to distribute products and services identified by their marks through alternative channels, such as the Internet, without compensating the franchisee, even within their development area. If a franchisee fails to meet their obligations under the development agreement, Aplus may terminate or modify territorial protections, reduce the size of the development area, or reduce the number of Aplus stores the franchisee may establish under the development schedule.