Following the termination of an Aplus franchise, is a franchisee allowed to represent themselves to the public as a current or former Aplus franchisee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as otherwise provided herein, upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall terminate and Franchisee shall:
- 17.1.1. Immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a franchisee is not allowed to represent themselves to the public as a current or former franchisee after the termination or expiration of the franchise agreement. Upon termination or expiration of the agreement, all rights granted to the franchisee are terminated, and the franchisee must immediately cease operating the franchised business.
Specifically, the franchisee is prohibited from directly or indirectly representing to the public that they are a present or former Aplus franchisee. This restriction ensures that the public is not misled into believing that a terminated or expired franchise is still operating under the Aplus brand and standards.
In addition to ceasing operations and representation, the franchisee must also stop using any of Aplus's trade secrets, confidential information, the system, and the marks, including slogans, symbols, logos, advertising materials, stationery, and forms associated with the marks. The franchisee must also take necessary actions to cancel or assign to Aplus any assumed name registrations that contain the name Aplus or any other mark, providing evidence of compliance within 30 days of termination or expiration.