Where can I find the definition of 'Approved Supplier(s)' within the Aplus Franchise Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Whenever used in this Agreement, the following words and terms have the following meanings:
- "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.
- "Agreement" means this agreement entitled "Sunoco Retail LLC Franchise Agreement" and all instruments supplemental hereto or in attachment, amendment, or confirmation hereof.
- "APLUS Store" or "APLUS Franchise" shall mean an APLUS Franchised Business.
- "Approved Supplier(s)" has the meaning given to such term in Section 13.1.
- "Approved Vendor Purchase Requirement" means we may implement a buying group in which your participation will be required. In connection with such buying group, you will be required and you agree to make up to 90% of your total inventory purchases and, separately, up to 90% of your cigarette purchases, both computed monthly at cost, from Approved Suppliers or Designated Specific Suppliers. No purchase will be credited toward your Approved Vendor Purchase Requirement unless the purchase is from an Approved Supplier or Designated Specific Supplier. The cost value used to calculate your percentage of
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the definition of "Approved Supplier(s)" is found in Section 13.1 of the franchise agreement. This is important for prospective franchisees because Aplus may implement a buying group where participation is required.
As part of this buying group, franchisees may be required to purchase up to 90% of their total inventory and, separately, up to 90% of their cigarette purchases, calculated monthly at cost, from Approved Suppliers or Designated Specific Suppliers. Purchases from other suppliers will not count towards meeting this requirement.
This Approved Vendor Purchase Requirement means that franchisees have a limited choice of suppliers and must adhere to Aplus's approved list to meet the purchase quotas. While Aplus approves these suppliers, neither Aplus nor its affiliates offer any warranties, including merchantability for a particular purpose, regarding the fixtures, furniture, equipment, computer systems, supplies, or other approved items.