Is the Aplus franchisee's obligation to repay the Funded Amount in addition to other payment obligations under the Franchise Agreement?

According to Aplus's 2024 Franchise Disclosure Document, the franchisee's obligation to repay the Funded Amount is indeed in addition to any other payment obligations they have under the Franchise Agreement. This means that if a franchisee receives funding from Sunoco (Aplus's parent company) for equipment and construction, they are responsible for repaying the unamortized portion of that funding if the Franchise Agreement is terminated early. This repayment is separate from, and in addition to, any other fees, royalties, or debts owed to Aplus.

This provision protects Sunoco's financial interests by ensuring that they recoup the invested capital in the event of early termination. For a prospective franchisee, this highlights the importance of carefully considering the terms of the Funding Agreement and the potential financial implications of terminating the franchise agreement before its natural expiration. Franchisees should be aware that early termination, regardless of the reason, triggers an immediate obligation to repay the unamortized Funded Amount, which could represent a significant financial burden.

It is also important to note that Sunoco maintains records of the total amount due from the franchisee regarding the Funded Amount and will provide copies of these records upon written request. This transparency helps franchisees stay informed about their repayment obligations. The FDD also states that the obligations to maintain equipment purchased under the funding agreement, including maintenance, replacement, taxes, and insurance, are the responsibility of the franchisee.