For an Aplus franchise, what constitutes a 'Competitive Business'?

According to the 2024 Aplus Franchise Disclosure Document, a 'Competitive Business' is defined as any business that offers or provides services similar to those of Aplus or Sunoco, or grants franchises/licenses to others for such businesses. This includes full-line retail grocery convenience stores and/or gasoline fueling stations. The definition also extends to businesses where Aplus's trade secrets or confidential information could be used to the disadvantage of Aplus, its affiliates, or other franchisees.

However, there are exceptions to this definition. A business operated by the franchisee under a franchise agreement with Aplus is not considered a 'Competitive Business'. Additionally, if the franchisee owns less than a 5% legal or beneficial interest in a publicly-held entity, that entity's business is also excluded from being classified as a 'Competitive Business'.

This definition has significant implications for prospective franchisees. It restricts franchisees from engaging in other businesses that directly compete with Aplus, potentially limiting their entrepreneurial activities. The exceptions provide some flexibility, allowing franchisees to operate other Aplus franchises or hold minor investments in larger companies. Franchisees should carefully consider these restrictions and how they might impact their future business endeavors before entering into a franchise agreement with Aplus.