Does Aplus grant an exclusive development area to its franchisees?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
1.2. Development Area
- 1.2.1. You will not receive an exclusive Development Area. Franchisor reserves the right to grant any third-party or Affiliate the right to operate another Store of the same Authorized Brand within the Development Area.
- 1.2.2. Franchisor reserves to itself other rights in and to use the Marks including the right to: (a) own and operate and to grant others the right to own and operate Stores outside the Development Area, regardless of their proximity to the Development Area; (b) operate Store and license the use of the Marks and System in "Captive Markets" within and outside the Development Area; and (c) distribute products and services identified by the Marks, through alternative channels of distribution the Internet.
- 1.2.3. Nothing in this Agreement prohibits or restricts Franchisor from (a) owning, acquiring, establishing, operating, or granting franchise rights for one or more other businesses under a different trademark or service mark (i.e., marks other than APLUS or SUNOCO), whether or not the business is the same as or competitive with Stores; or (b) owning, operating, or franchising one or more businesses offering products or services other than similar to those provided in the Franchise Agreement under the name APLUS, SUNOCO, or some derivative of the Marks.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus does not grant exclusive development areas to its franchisees. The franchisor retains the right to allow other third parties or affiliates to operate Aplus stores within the franchisee's development area.
Specifically, Aplus reserves the right to operate stores and license the use of its marks and system in "Captive Markets" both inside and outside the development area. Captive Markets include venues like turnpikes, airports, and military bases. Aplus also retains the right to distribute products and services identified by its marks through alternative channels of distribution, including the Internet.
Furthermore, the agreement does not prevent Aplus from owning, operating, or franchising other businesses under different trademarks, even if they compete with Aplus stores. They can also operate or franchise businesses offering different products or services under the Aplus or Sunoco name. This means that a franchisee's development area is not protected from competition from other Aplus-related ventures or other brands owned by the franchisor.