What form must an Aplus franchisee sign to transfer their interest to a business entity?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
on of these facilities (which you acknowledge may be proximate to any Store developed under this Agreement).
- 8.2. Transfer by Individual Developer to Business Entity for Convenience. If you are an individual, you may transfer your interest in this Agreement to a Business Entity for convenience of operation within the first 12 months of this Agreement by signing Franchisor's standard form of assignment and assumption agreement if: (a) the Business Entity is formed solely for purposes of continuing your development rights and obligations; (b) you provide to Franchisor a copy of the Business Entity's formation and governing documents and a certificate of good standing from the jurisdiction under which the Business Entity was formed; (c) you si
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if an individual Aplus developer wishes to transfer their interest in the Development Agreement to a business entity within the first 12 months of the agreement, they must sign Aplus's standard form of assignment and assumption agreement. This transfer is allowed for the convenience of operation.
In addition to signing the assignment and assumption agreement, the franchisee must meet other conditions. They must ensure that the business entity is formed solely to continue the development rights and obligations under the agreement. The franchisee must also provide Aplus with a copy of the business entity's formation and governing documents, along with a certificate of good standing from the jurisdiction where the entity was formed.
Furthermore, the individual must sign a general release in favor of Aplus, using the form that Aplus requires. Finally, the franchisee is responsible for paying Aplus an administrative fee of $1,500 to complete the transfer. These stipulations ensure that Aplus maintains control over who is developing their franchises and that all parties are legally bound to the terms of the agreement.