How does the Aplus franchise agreement define 'Franchised Business'?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, Franchisor grants to qualified persons and business entities the right to own and operate an authorized brand or brands Franchised Business using the System and the Marks, as indicated on the Summary Page; and
WHEREAS, Franchisee desires to operate a Franchised Business, as indicated on the Summary Page, has applied for the Franchise and such application has been approved by Franchisor in reliance upon all of the representations made herein and therein; and
WHEREAS, Franchisee understands and acknowledges the importance of Franchisor's high and uniform standards of quality, operations and service and the necessity of operating the Franchised Business in strict conformity with Franchisor's System.
NOW, THEREFORE, Franchisor and Franchisee, intending to be legally bound, agree as follows:
1. DEFINITIONS
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, an 'APLUS Store' or 'APLUS Franchise' is defined as an Aplus Franchised Business. This definition appears in the section of the franchise agreement that outlines key definitions used throughout the document. Understanding this definition is crucial for franchisees as it sets the stage for the rights and obligations associated with operating an Aplus franchise.
The agreement emphasizes that Aplus grants qualified individuals the right to operate an authorized franchised business using Aplus's system and marks. Franchisees must acknowledge the importance of maintaining Aplus's standards of quality, operations, and service. This highlights the importance of adhering to Aplus's established business model and operational guidelines.
Furthermore, the location of the Franchised Business is described in Attachment 1 ('Key Terms'). Franchisees are typically required to identify and secure a site for their Aplus store within 30 days of the agreement's effective date. The selected site must meet Aplus's criteria and be mutually acceptable to both the franchisee and Aplus. Aplus may offer assistance in site selection, but the ultimate decision and responsibility lie with the franchisee. Failure to secure an approved site within 90 days can result in termination of the agreement.