For the Aplus franchise, who has primary responsibility for the costs of repair or replacement of damaged Sunoco property, even if Sunoco recovers costs from liable parties?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
including that caused by third parties. Franchisee must repair or replace any Equipment, buildings, and fixtures at the Premises so damaged. Sunoco reserves the right to determine how best to repair or replace damaged Equipment or Premises. Sunoco may require Franchisee to follow its directions as to proper repair and/or replacement. Should Franchisee not comply with Sunoco's directions, Sunoco or its agents may repair or replace damaged property to its standards, costs of which will be billed to and paid by Franchisee.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee retains primary responsibility for the costs of repair or replacement of damaged Sunoco equipment or premises, even if Sunoco makes efforts to recover these costs from the parties responsible for the damage. This means that initially, the franchisee is on the hook for covering these expenses.
Specifically, the franchisee is obligated to repair or replace any damaged equipment, buildings, and fixtures at the premises. They must also submit a completed Damage Report to Sunoco in the event of any damage to Sunoco's equipment or premises, including details such as names of people involved, date, time, witnesses, insurance companies, and the nature and extent of the damages.
While Sunoco will attempt to recover the costs from liable parties and will reimburse the franchisee for any costs recovered, the franchisee's primary responsibility remains. This arrangement places a significant financial burden on the franchisee, as they must front the costs for repairs and replacements, hoping for eventual reimbursement from Sunoco's recovery efforts. This is a notable risk for prospective Aplus franchisees to consider.