What is the Aplus franchisee's obligation if Aplus disapproves of an item or service they are using?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1.4. Notwithstanding anything contrary in this Agreement, Franchisor has the right to review from time to time its approval of any items or suppliers. Franchisor may revoke its approval of any item, service or supplier at any time by notifying Franchisee and/or the supplier. Franchisee shall, at its own expense, promptly cease using, selling or providing any items or services disapproved by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, Aplus retains the right to periodically review and revoke approval of any items or suppliers. If Aplus revokes approval of any item, service, or supplier, they will notify the franchisee and/or the supplier.
Upon receiving such notification, the franchisee is obligated, at their own expense, to immediately stop using, selling, or providing any items or services that Aplus has disapproved. This means the franchisee must bear the financial burden of discontinuing the use of the disapproved items or services.
This clause highlights the importance of Aplus franchisees staying informed about approved suppliers and items, and being prepared to adapt their business practices quickly if Aplus changes its standards. It also underscores a potential risk for franchisees, as they may incur costs associated with replacing disapproved items or services.