What is the Aplus franchisee's obligation regarding the Development Schedule, and where is this schedule located?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
5. DEVELOPER'S OBLIGATIONS
- 5.1. Satisfaction of Development Schedule. You shall execute a Franchise Agreement for each Store contemplated under this Agreement in accordance with Section 4.1. and the Development Schedule and shall establish and operate each Store in accordance with the terms and conditions of the respective Franchise Agreement.
- 4.4. Development Schedule.
Acknowledging that time is of the essence, you agree to exercise your development rights according to Section 4.3. and the Development Schedule reflected Attachment B.
- 4.4.1.
If during the term of this Agreement, you cease to operate any Store developed under this Agreement for any reason, you shall develop a replacement Store.
The replacement Store shall be developed within a reasonable time (not to exceed 180 days) after you cease to operate the original Store.
If during the term of this Agreement, you transfer your interest in a Store in accordance with the terms of the applicable Franchise Agreement for the Store, the transferred Store will continue to be counted in determining whether you have complied with the Development Schedule so long as it continues to be operated as the Store with the Authorized Brand.
If the transferred Store ceases to be operated as a Store with the Authorized Brand during the term of this Agreement, you shall develop a replacement Store within a reasonable time (not to exceed 180 days) thereafter.
- 4.4.2.
Your failure to adhere to the Development Schedule (including any extensions thereof, approved by Franchisor in writing) or to any time period for the development of replacement Stores is a material breach of this Agreement.
You acknowledge that you have performed all related and necessary due diligence before your execution of this Agreement and that, accordingly, you assume the risk of identifying a sufficient number of acceptable locations within the Development Area and the economic risk of developing the number of Stores set forth in Attachment B.
SUNOCO RETAIL LLC DEVELOPMENT AGREEMENT
ATTACHMENT B DEVELOPMENT SCHEDULE
The "Development Area" is as follows:
The "Development Schedule" is as follows:
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees must adhere to the Development Schedule outlined in Attachment B of the Development Agreement. Franchisees are obligated to exercise their development rights according to Section 4.3 and the Development Schedule. This includes executing a Franchise Agreement for each store contemplated under the Development Agreement, as per Section 4.1, and establishing and operating each store according to the terms and conditions of the respective Franchise Agreement. Time is of the essence, and failure to adhere to the Development Schedule or any time period for developing replacement stores constitutes a material breach of the agreement.
Attachment B to the Sunoco Retail LLC Development Agreement contains the Development Schedule and specifies the Development Area. If a franchisee ceases to operate a store, they must develop a replacement store within a reasonable time, not exceeding 180 days. If a store is transferred and continues to operate as an Aplus store, it counts toward fulfilling the Development Schedule. However, if the transferred store ceases to operate as an Aplus store, a replacement store must be developed within a reasonable time, again not exceeding 180 days.
Prospective Aplus franchisees should carefully review Attachment B to understand their obligations for store development timelines and geographic areas. They should also assess their ability to meet these obligations, considering factors such as site selection, financing, and local market conditions. It is important to note that Aplus makes no representation that the Development Area contains a sufficient number of acceptable locations or that the area is sufficient to economically support the number of stores to be developed under the Development Schedule. Franchisees assume the risk of identifying suitable locations and the economic viability of developing the required number of stores.