Is an Aplus franchisee prohibited from installing storage and dispensing equipment for compressed natural gas or liquefied petroleum gases?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.11 Description of Property; Loaned Equipment; Trademarks
- (A) In consideration of your payment of the Monthly Fees required by Sections 1.03 and 1.04 and the performance of your other obligations set forth herein, Lessor hereby leases to you and you hereby lease from Lessor the Premises located at the address set forth in Section 1.01, together with all buildings, improvements, and appurtenances situated thereon or pertaining thereto (hereinafter collectively referred to as the "Premises"), except such portion of the Premises as Lessor designates now or in the future for the installation of and use as an Electronic Banking Machine(s) (such portion hereinafter referred to as the "ATM" site). The essential purpose of this Lease is for the Premises to be used as an APlus mini market or APlus Express and where applicable a service station selling Sunoco branded Motor Fuel(s). "Motor Fuel(s)" includes automotive gasoline usable as a motor vehicle fuel, excluding without explicit written approval of Sunoco the following: diesel fuel, kerosene, and fuels that are gaseous at standard temperature and pressure. The premises include underground storage tanks ("USTs") for Motor Fuels, related lines and connections, Motor Fuel dispensers, and other loaned personal property located thereon.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are restricted regarding the types of motor fuels they can sell. The lease agreement specifies that the essential purpose of the premises is for use as an Aplus mini market or Aplus Express, and where applicable, a service station selling Sunoco branded Motor Fuel(s). Motor Fuel(s) includes automotive gasoline usable as a motor vehicle fuel, but explicitly excludes, without written approval from Sunoco, diesel fuel, kerosene, and fuels that are gaseous at standard temperature and pressure.
This means that an Aplus franchisee cannot sell diesel fuel, kerosene, or gaseous fuels like compressed natural gas or liquefied petroleum gases unless they obtain explicit written approval from Sunoco. This restriction ensures that the Aplus location adheres to the brand's standards and offerings, limiting the franchisee's flexibility in choosing which fuels to sell.
For a prospective franchisee, this limitation is important to consider, as it directly impacts the potential customer base and revenue streams. If a franchisee wishes to offer alternative fuels, they must seek and obtain written permission from Sunoco, which may or may not be granted. This could affect the franchisee's ability to cater to specific local market demands or preferences for different fuel types.