Is an Aplus franchisee responsible for verifying the reasonableness of the inventory results?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.15.1.You are solely responsible for verifying that the inventory results appear reasonable.
- 13.15.2.While inventories are required as scheduled above, Sunoco recommends that you have the inventory performed as needed or on a quarterly basis as a management control.
- 13.15.3.Sunoco reserves the right to utilize their internal inventory service department to perform the annual physical inventory service upon thirty (30) days' notice.
- 13.15.4.In the event you dispute the results of any inventory taken by the inventory service selected by Sunoco, you may request that a second inventory be taken. If the results of the second inventory show that: (a) the first inventory was correct, you shall be responsible for the costs incurred in taking the second inventory; (b) the first inventory was incorrect by more than 2% from the second inventory for the APLUS Store or any section of the APLUS Store, Sunoco shall be responsible for payment of the cost incurred in taking the second inventory.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee is solely responsible for verifying the reasonableness of the inventory results. This means that after an inventory is conducted, the franchisee must check the results to ensure they seem accurate and logical.
Sunoco recommends that franchisees have inventories performed as needed or on a quarterly basis as a management control, even though inventories are required as scheduled. Sunoco also reserves the right to use its internal inventory service to perform the annual physical inventory, providing 30 days' notice to the franchisee.
If a franchisee disputes the results of an inventory taken by Sunoco's selected inventory service, they can request a second inventory. However, the franchisee will be responsible for the costs of the second inventory if the first inventory is found to be correct. Conversely, Sunoco will cover the costs if the first inventory was incorrect by more than 2% from the second inventory for the APLUS Store or any section of the APLUS Store. This clause incentivizes franchisees to carefully review inventory results but also provides a mechanism for resolving disputes.