For Aplus franchisees, what are the responsibilities regarding the maintenance of equipment at their own cost and expense?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
r of the term of APLUS Agreement. If APLUS Agreement is terminated for any reason prior to the expiration of the term, Franchisee shall repay to Sunoco the unamortized Funded Amount. Sunoco shall maintain records indicating the total amount due and owing from Franchisee with respect hereto and shall, upon written request by Franchisee, provide Franchisee with copies of such records. Franchisee's obligation to repay
the Funded Amount upon termination of this Agreement shall (a) be in addition to any other right or claims Sunoco has or may have with respect to such termination.
- 22.3. As it relates to the equipment purchased under the Funding Agreement, you, at your own cost and expense, shall (a) maintain the equipment in good repair and operating condition, (b) replace any equipment that is stolen, lost, destroyed or damaged beyond repair, which replacement equipment shall become our property, (c) replace any parts of the equipment which become worn out, lost, destroyed or damaged, which replacement parts shall become our property, (d) file the necessary tax returns and pay any property taxes associated with the equipment, and (e) obtain insurance coverage for the equipment as required by the terms of your agreement. Tax issues may arise with respect to the Funding Agreement. Sunoco does not make any representation as to the proper tax treatment of the funding and you should consult your own tax advisor.
- 22.4. Sunoco reserves the uninhibited right terminate this Agreement in the event you do not complete the required construction or conversion of the Premises to an APLUS Store per System standards. The Franchise Fee and any other fees paid to Sunoco to date are nonrefundable.
- 22.5. As soon as reasonably practicable after you have completed construction or conversion, obtained a beer and wine license (if available) and satisfactorily completed Sunoco's APLUS Training Program, Sunoco shall install exterior signage up to Sunoco's specifications. Depending upon the size, type, and design of the building, Sunoco may charge you for the cost and installation of the APLUS signage and/or exterior graphics.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees have several responsibilities regarding equipment maintenance, depending on whether they receive funding from Sunoco for equipment and construction.
If an Aplus franchisee accepts funding from Sunoco via the Equipment and Construction Funding Agreement, they are responsible for maintaining the equipment in good repair and operating condition at their own cost and expense. This includes replacing any equipment that is stolen, lost, destroyed, or damaged beyond repair, as well as replacing worn-out, lost, destroyed, or damaged parts. The replacement equipment and parts become Sunoco's property. Additionally, the franchisee is responsible for filing the necessary tax returns and paying any property taxes associated with the equipment and obtaining the required insurance coverage.
Regardless of funding, Aplus franchisees must also adhere to the general housekeeping and maintenance provisions outlined in the Aplus manual. This includes maintaining the premises, loaned equipment, and their own property and equipment in a clean, neat, orderly, sanitary, safe, and trash- and weed-free condition. Franchisees must also comply with all repair, replacement, health, safety, and security standards and specifications set by Aplus and any applicable laws or regulations, with the expense of such maintenance borne by the franchisee.
Furthermore, franchisees are responsible for the acquisition, operation, maintenance, updates, and upgrading of the Computer System, including compliance with Aplus's standards. They are also responsible for how their Computer System interfaces with Aplus's and third parties' systems, the installation, maintenance, and support of the Computer System, and any consequences arising from improper operation, maintenance, or upgrades, such as virus and spyware issues. The Computer Systems must comply with all applicable laws, regulations, and industry standards related to privacy, data security, and electronic payments.