What are some examples of venues that Aplus considers to be a 'Captive Market'?

According to Aplus's 2024 Franchise Disclosure Document, a 'Captive Market' refers to specific venues where the customer base is somewhat limited or controlled. Aplus defines these locations as including, but not limited to, turnpikes, thruways, toll roads, airports, travel plazas, arenas, convention centers, or military bases. Additionally, venues where food and/or beverage service rights are contracted to a third party also fall under this definition.

For a prospective Aplus franchisee, understanding the concept of 'Captive Markets' is crucial because the franchisor, Sunoco Retail LLC, reserves the right to operate Aplus stores and license the use of its marks and system in these 'Captive Markets,' regardless of the franchisee's development area. This means that even if a franchisee has a designated development area, Aplus can still establish stores in these specific locations within or outside that area.

This reservation of rights has significant implications for franchisees. It means that Aplus retains control over potentially lucrative locations and can directly compete with its franchisees in certain circumstances. Franchisees should carefully consider this aspect, as it could affect their potential market share and revenue. It is important to note that the franchisor's right to operate in 'Captive Markets' applies both within and outside the franchisee's designated development area, further emphasizing the importance of understanding this clause in the Development Agreement.