factual

What entities are considered 'Affiliates' of the Aplus franchisor?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

  • "Affiliate" means any business entity that controls, is controlled by, or is under common control with Franchisor, including but not limited to Sunoco LLC, a Delaware limited liability company.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, an 'Affiliate' is defined as any business entity that controls, is controlled by, or is under common control with Aplus. The document specifically names Sunoco LLC, a Delaware limited liability company, as an example of an affiliate.

This definition is important for prospective franchisees because the actions and financial health of Aplus's affiliates could potentially impact the franchise system. For instance, Aplus franchisees may be required to pay sums owing to Aplus and any affiliate upon termination or expiration of the franchise agreement.

Furthermore, Aplus franchisees are required to defend and indemnify Aplus and its affiliates from liabilities arising from the franchisee's business operations. Understanding the scope of 'affiliates' is therefore crucial for assessing potential risks and obligations under the franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.