Who is the Aplus Franchise Agreement binding upon?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that Franchisor has the right to assign its rights or delegate the performance of any portion or all of Franchisor's rights or obligations under this Agreement to third party designees, an area representative (if applicable), or independent contractors with whom Franchisor contracts to perform these obligations without the prior written consent of the Franchisee. If Franchisor assigns its rights to receive any amount under this Agreement to any third-party, Franchisee recognizes that they shall be liable for all compliance and shall make such payments directly to the designated third-party.
Franchisee shall operate the Franchised Business so that it is clearly identified and advertised as an APLUS Store. Franchisee shall use the trademark "APLUS" and the other Marks which now or hereafter may form a part of the System, on all signs, suppliers, business cards, uniforms, advertising materials, Technology platforms, signs and other articles in the identical combination and manner as the Franchisor may prescribe in writing and Franchisee shallsupply to the Franchisorsamples and photographs of the same upon Franchisor's request. Franchisee shall comply with all trademark, trade name, service mark and copyright notice marking requirements and Franchisee shall ssupply to the Franchisor samples or photographs upon Franchisor's request.
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;
- 17.1.2. Cease to use the Trade Secrets or other Confidential Information, the System and the Marks including, without limitation, all slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
- 17.1.3. Take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city or county authorities which contains the name APLUS or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, the agreement is binding upon the franchisee and Aplus (the franchisor). The franchisee is responsible for operating the Aplus store according to the guidelines set forth in the franchise agreement and the Aplus manual.
The agreement also addresses situations where Aplus may delegate its responsibilities to third parties, such as Area Representatives. If Aplus assigns its rights to receive payments to a third party, the franchisee is obligated to make those payments directly to the designated third party. The franchisee must also allow Area Representatives access to the Aplus store for inspections and other visits, as if they were employees of Aplus.
Furthermore, the agreement outlines the franchisee's obligations upon termination or expiration of the agreement, including ceasing operation of the franchised business, discontinuing the use of Aplus's trade secrets and marks, and taking actions to de-identify the premises as an Aplus store. These obligations ensure that the franchisee does not continue to benefit from the Aplus system after the agreement ends, and protects Aplus's brand and intellectual property.