For an Aplus franchise, what are the franchisee's responsibilities regarding major repairs to walk-in coolers and walk-in freezers, and what financial threshold defines a major repair?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Item | Sunoco | Franchisee |
|---|---|---|
| Painting | Periodic repainting of buildings, kiosk, and canopies. Sunoco will also provide paint for touch-ups. | Touch-up paint. |
| Gutters & Downspouts | Repair or replace. | Maintain clean and clear of any blockage, including canopies. |
| Concrete & Tile Floor | Repair or replace deteriorated floors. | Maintain clean and clear of obstacles. Notify Sunoco of any potentially hazardous holes, cracks, or spalled sections. |
| Heating, Venting & Air | ||
| Conditioning | ||
| HVAC Equipment | Responsible for major repairs and replacements. Major repairs are defined generally as those over $250 per occurrence. | Must carry a Preventive Maintenance ("PM") contract per Part III, Section 3.02(c) herein (see Exhibit "B" for requirements). Franchi |
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are responsible for major repairs and replacements of walk-in coolers and walk-in freezers. A major repair is generally defined as one exceeding $250 per occurrence. This includes the repair or replacement of components like compressors, condensers, evaporator coils, exchangers, and burners. The franchisee is responsible for the first $250 of any repairs.
In practical terms, if a walk-in cooler breaks down and the repair cost is $600, the Aplus franchisee would pay the full $600. If the repair cost is $1,000, the franchisee is responsible for the entire amount. This financial responsibility underscores the importance of budgeting for potential equipment failures and understanding the terms of the franchise agreement regarding maintenance and repairs.
Additionally, the Aplus franchisee must maintain the unit, ensuring it is clear and free of blockages. They are also required to have a Preventive Maintenance (PM) contract, as detailed in Part III, 3.02(c) of the franchise agreement, with specific requirements outlined in Exhibit "B". This PM contract is a mandatory aspect of maintaining the refrigeration systems and helps to ensure that potential issues are identified and addressed before they escalate into major repairs. Choosing a reputable contractor for the PM contract is essential, and a copy of the contract must be provided to Sunoco's Maintenance Department annually.