In the event of condemnation of the Aplus premises, does the franchisee have any claim to the condemnation award payable to Sunoco?

According to Aplus's 2024 Franchise Disclosure Document, if the Aplus premises are condemned, the franchisee generally has no claim to the condemnation award that is payable to Sunoco. However, the franchisee may be entitled to a separate award from the condemning authority. This separate award would be specifically for the taking of the franchisee's leasehold interest, loss of business opportunity, or goodwill.

This means that while Sunoco, as the property owner, receives compensation for the physical property, the Aplus franchisee may independently pursue compensation for the disruption to their business. This could include the value of the remaining lease term, lost profits, and the value of the established customer base (goodwill).

It is important for a prospective Aplus franchisee to understand that the condemnation clause separates the compensation for the property itself from the compensation for the business operating on the property. Franchisees should consult with legal counsel to fully understand their rights and how to properly document and claim any losses related to their leasehold interest, business opportunity, and goodwill in the event of a condemnation.