To be eligible for a successor franchise, must the Aplus franchisee and each owner have substantially complied with the Aplus Franchise Agreement, ancillary agreements, the Manual, and if applicable, the Premises Lease and/or the Sunoco Motor Fuel Supply Agreement during the entire term of the agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.2.1. Franchisee and each Owner has, during the entire term of this Agreement, substantially complied with all material provisions of this Agreement, ancillary agreements to this Agreement, the Manual, and if applicable, the Premises Lease and/or the Sunoco Motor Fuel Supply Agreement;
- 4.2.2. Franchisee has entered into a written commitment to, update and refurbish the Franchised Business and Store equipment within the time frame established by Franchisor, to reflect Franchisor's thencurrent standards and specifications applicable to the System;
- 4.2.3. Franchisee has satisfied all monetary obligations owed by Franchisee to Franchisor (or any Affiliate), and has timely met these obligations throughout the term of this Agreement;
- 4.2.4. Neither Franchisee nor each Owner is in default of any provision of this Agreement or any other agreement between Franchisee and Franchisor (or any Affiliate);
- 4.2.5. Franchisee has given written notice of its intent to operate a successor franchise to Franchisor not less than ninety (90) days nor more than one hundred and eighty (180) days prior to the end of the term of this Agreement;
- 4.2.6. Franchisee has met Franchisor's then-current qualification criteria and has executed Franchisor's then-current form of Franchise Agreement (or has executed other documents at Franchisor's election that modify this Agreement to reflect the fact that the Franchise Agreement relates to the grant of a successor franchise), which the then-current Franchise Agreement shall supersede this Agreement in all respects, and the terms of which may materially differ from the terms of this Agreement by requiring, among other things, a different percentage Royalty Fee, or Marketing Fee;
- 4.2.7. Franchisee and each Owner has complied with Franchisor's then-current training requirements; and
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, to be eligible for a successor franchise, the franchisee and each owner must have substantially complied with all material provisions of the Aplus Franchise Agreement, any ancillary agreements, the Manual, and if applicable, the Premises Lease and/or the Sunoco Motor Fuel Supply Agreement during the entire term of the agreement. This requirement ensures that franchisees seeking to renew their agreement have consistently adhered to Aplus's standards and operational guidelines.
In addition to compliance, the franchisee must also enter into a written commitment to update and refurbish the franchised business and store equipment within a timeframe set by Aplus to meet the current standards and specifications of the Aplus system. The franchisee must also satisfy all monetary obligations owed to Aplus or any affiliate and have met these obligations in a timely manner throughout the agreement's term. Furthermore, neither the franchisee nor any owner can be in default of any provision of the Franchise Agreement or any other agreement with Aplus or its affiliates.
The franchisee must provide written notice of their intent to operate a successor franchise to Aplus between 90 and 180 days before the end of the current agreement. They must also meet Aplus's then-current qualification criteria and execute the current form of the Franchise Agreement, which may have materially different terms, such as a different royalty or marketing fee. Finally, the franchisee and each owner must comply with Aplus's then-current training requirements.
These conditions for obtaining a successor franchise highlight the importance of maintaining a strong operational and financial record with Aplus. Franchisees should be aware that renewal is not automatic and depends on meeting these criteria, which may include significant investments in updating the store and equipment to meet Aplus's evolving standards.