Is an Aplus franchisee required to participate in Proprietary Programs designated by Sunoco?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
e the right to charge a fee for this service.
We have developed certain other proprietary programs to provide offerings to APLUS consumers. You may participate in the Air and Vacuum Program. You are required to fully participate in any program, or other specific merchandise programs, designated by us from time to time as described in the Systems Manual, which may include, but is not limited to, proprietary programs, specific product offerings and/or promotions (such as foods and beverages identified by us), approved prepaid programs such as gift cards, phone cards, and other related telecommunications products, ATM program, and APLUS rewards and/or loyalty program, which may change periodically (collectively, "Proprietary Programs"). We will work with you in determining whether any such Proprietary Programs are appropriate for your store. If so, you agree to purchase all ingredients, materials and items required for each Proprietary Program from Sunoco's Designated Specific Suppliers.
We reserve the right to amend, supplement or discontinue any program described in this Item 8 in whole or in part at any time during the term of the franchise upon written notice to you.
APLUS Rebates, Allowances and/or Purchase Agreements
Certain Designated Specific Suppliers may enter into arrangements with certain manufacturers or suppliers to provide discounts or rebates to Sunoco/APLUS franchisees. The amounts of such rebates or discounts may vary based on the volume of purchases made by the APLUS Stores and are paid either: (i) by the manufacturer or supplier directly to the franchisees; or (ii) by the manufacturer or supplier to us and distributed to our franchisees on an equitable basis; or (iii) placed in the APLUS Store advertising account for the benefit of all APLUS Stores. Suppliers' allowances may be paid directly to us or to a distributing wholesaler to fund off-invoice allowances provided to your store by the wholesaler.
There are no purchasing or distribution cooperatives currently established.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to participate fully in programs designated by Aplus (Sunoco). These programs, as detailed in the Systems Manual, may include proprietary programs, specific product offerings, and promotions such as identified foods and beverages. Other examples include approved prepaid programs like gift cards and phone cards, ATM programs, and Aplus rewards or loyalty programs. These "Proprietary Programs" may change periodically. Aplus will work with the franchisee to determine if these programs are appropriate for the store, and if so, the franchisee must purchase all necessary ingredients, materials, and items from Sunoco's Designated Specific Suppliers.
In addition to the Proprietary Programs, Aplus franchisees are also required to participate in several other programs. These include the Hot Dispensed Beverages Program, Cold Dispensed Beverages Program, Food and Food Service Program, Prepaid Program, ATM Program (unless restricted), and all other promotional offers or special pricing programs designated by Aplus. Franchisees must also participate in state agency licensed programs such as the Beer and Wine Program, Tobacco Products and Tobacco Compliance Program, and Lottery/Lotto/Multi-State Program, unless prohibited by regulation or statute.
Aplus also has the right to amend, supplement, or discontinue any program, in whole or in part, at any time during the franchise term, provided they give written notice to the franchisee. This gives Aplus considerable flexibility to change the required programs, potentially impacting the franchisee's operations and profitability. Franchisees should stay informed of any program changes and understand how these changes may affect their business.