factual

Does the Aplus Franchise Agreement include Store specific terms and conditions?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

7. Supplemental Terms:

The parties acknowledge and agree that the Agreement is hereby supplemented by the inclusion of the following terms and conditions:

"22. STORE SPECIFIC ADDITIONAL TERMS AND CONDITIONS

  • 22.1. Construction/Conversion of Leased APLUS Store Premises
  • 22.1.1. Within the timeframe established by Sunoco, Sunoco shall undertake such construction or conversion of the Premises as is necessary, in Sunoco's sole opinion, to make the Premises suitable for operation of an APLUS Store. Notwithstanding the foregoing, in addition to any other rights of termination, Sunoco may revoke this Agreement before the Commencement Date in the event any of the following conditions ("Conditions Precedent") have not been satisfied. The Conditions Precedent are as follows:
  • 22.1.1.a. Sunoco must obtain, in a form satisfactory to Sunoco, all licenses, permits, variances, and other required governmental approvals necessary for such construction and conversion of the Premises.
  • 22.1.1.b. Sunoco must obtain, in a form satisfactory to Sunoco, contractor(s) bid(s) covering all construction and/or conversion, including the cost of installing all Store equipment to be installed by Sunoco, but not including the purchase price of the Store equipment. Sunoco retains the right to reject any bids that are not acceptable in Sunoco's sole opinion.
  • 22.1.1.c. If the Premises is located in a jurisdiction where beer and wine licenses are available to convenience food store operators, Franchisee must obtain a beer and wine license at your sole cost and expense. If by law, a beer and wine license is not available until construction is completed or the APLUS Store is open for business, this requirement shall be waived as a Condition Precedent; however, you acknowledge and agree you will diligently pursue obtaining a beer and wine license at the earliest possible date.
    • 22.1.1.d. If before the Commencement Date, circumstances arise that render the

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to the 2024 Aplus Franchise Disclosure Document, the agreement is supplemented by store-specific terms and conditions. These additional terms are outlined in Section 22 of the agreement, titled "Store Specific Additional Terms and Conditions."

Section 22.1 addresses the construction or conversion of leased Aplus store premises. Sunoco will undertake the construction or conversion necessary to make the premises suitable for an Aplus store within a timeframe established by Sunoco. However, Sunoco retains the right to revoke the agreement before the commencement date if certain conditions precedent are not satisfied. These conditions include obtaining necessary governmental approvals, acceptable contractor bids, and, if applicable, a beer and wine license.

Specifically, if circumstances arise before the commencement date that make the construction or conversion uneconomical in Sunoco's opinion, Sunoco may revoke or terminate the agreement. This clause highlights the potential risks and uncertainties involved in the initial setup phase of the franchise, where unforeseen issues could lead to termination of the agreement before the franchisee even begins operations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.