Does Aplus grant franchisees options or rights of first refusal to acquire additional franchises without a Development Agreement?

According to Aplus's 2024 Franchise Disclosure Document, franchisees are not granted options or rights of first refusal to acquire additional franchises without a Development Agreement. An Aplus franchise is for a specific location approved by Aplus, and franchisees cannot relocate or establish additional Aplus stores without prior written approval.

Under a Development Agreement, Aplus grants the developer the right to develop and operate a specified number of Aplus stores at sites in a specified development area. This area will be identified in the Development Agreement and may be described in terms of cities, counties, states, or some other designation. Aplus reserves all other rights, including the right to own and operate and to grant others the right to own and operate Aplus stores outside the development area.

For prospective Aplus franchisees, this means that if they want to expand and open additional locations, they typically need to enter into a separate Development Agreement with Aplus. Without this agreement, there is no guarantee or preferential treatment for acquiring additional franchise locations. This is a fairly standard practice in franchising, as it allows the franchisor to control the growth and distribution of their brand more effectively.