What happens to alterations made to the Aplus premises by the franchisee with Sunoco's consent at the end of the lease?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (A) (1) Except with prior written consent of Sunoco, you shall not make additions, alterations, or changes to the Premises, nor erect or add any buildings or other enclosures on the Premises. Additions or alterations made to the Premises by you with the prior written consent of Sunoco shall be performed in a good and workmanlike manner in accordance with Sunoco's engineering standards.
- (4) At the end of this Lease, the Premises shall be restored to their original condition at your expense, normal wear and tear excepted. However, Sunoco may in writing waive all or part of this requirement, and may permit your additions and alterations, or any part thereof, to remain upon Premises. If so, such additions and alterations shall become Sunoco's property.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee makes alterations or additions to the premises with Sunoco's prior written consent, the franchisee is generally required to restore the premises to its original condition at the end of the lease, with an exception for normal wear and tear. However, Sunoco has the option to waive this restoration requirement in writing, either partially or entirely.
If Sunoco waives the restoration requirement and permits the alterations or additions to remain on the premises, these alterations and additions become the property of Sunoco. This means that the franchisee would not be compensated for the improvements they made and would relinquish any ownership rights to them.
This clause is important for prospective Aplus franchisees to consider, as any investment in leasehold improvements could be forfeited at the end of the lease term if Sunoco chooses to exercise its right to retain the alterations. It is advisable for franchisees to discuss potential alterations with Sunoco beforehand and clarify the terms regarding ownership and restoration responsibilities in writing to avoid potential disputes later on.