When does the Aplus Franchise Agreement become effective?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The address of the approved location for the Franchised Business is described, or if not yet identified as of the Effective Date, is described on Attachment 1 ("Key Terms"). You must identify and acquire a site for the APLUS Store within thirty (30) days after the Effective Date of this Agreement. The site must meet Franchisor's then-current site selection criteria, and must otherwise be mutually acceptable to you and to Franchisor. Franchisor will approve or reject your site within thirty (30) days of receiving your application and all required information. Franchisor may assist you in site selection, in its sole discretion, which assistance may include making available to you the services of an internal development management team or a designated third party tenant representative consulting firm. If required, you must use the services of a designated tenant representative consulting firm and pay any fees imposed by the firm. Although Franchisor or its tenant representative may propose sites for your consideration, you understand that ultimate site selection is solely your choice and your responsibility. If an acceptable site is not found by the Franchisee and approved by the Franchisor within ninety (90) days of the Effective Date, then Franchisor reserves the right to terminate this Agreement. Franchisor may utilize a Designated Service Provider to perform any of its duties under this Section 5.1 and Section 5 generally.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the effective date of the Franchise Agreement is relevant to site selection. Specifically, franchisees must identify and acquire a site for their Aplus store within thirty days after the agreement's effective date.
This means the clock starts ticking on the franchisee's site selection as soon as the Franchise Agreement is in effect. Failing to secure an acceptable site within 90 days of the effective date can lead to Aplus terminating the agreement.
While the excerpt specifies actions tied to the "Effective Date", it does not explicitly define what constitutes the "Effective Date" of the Aplus Franchise Agreement. A prospective franchisee should clarify with Aplus the specific conditions that trigger the agreement's effectiveness to fully understand their obligations and deadlines.