What happens if an Aplus developer fails to adhere to the Development Schedule?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Your failure to adhere to the Development Schedule (including any extensions thereof, approved by Franchisor in writing) or to any time period for the development of replacement Stores is a material breach of this Agreement.
- 9.2.
Termination with Notice and Without Opportunity to Cure.
Franchisor has the right to terminate this Agreement, which termination will become effective upon delivery of notice without opportunity to cure if: (a) you fail to meet the Development Schedule; (b) you or any Owner is convicted of, or pleads no contest to, a felony, a crime involving moral turpitude, or any other crime or offense that Franchisor believes is reasonably likely to have an adverse effect on the System; (c) there is any transfer or attempted transfer in violation of Article 8 of this Agreement; (d) you or any Owner fails to comply with the confidentiality or non-compete covenants in Article 6 and Article 10 of this Agreement; (e) you or any Owner has made any material misrepresentations in connection with your developer application; (f) Franchisor delivers to you two or more written notices of default pursuant to this Article 9 within any rolling 12-month period, whether or not the defaults described in such notices ultimately are cured; or and (g) violate the non-disparagement requirements pursuant to Section 5.3. above.
9.3. Termination with 10-Day Cure Period.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, failing to adhere to the Development Schedule is considered a material breach of the Development Agreement. The Development Schedule outlines the specific time periods during which the developer is obligated to construct, equip, open, and operate Aplus stores. This schedule is included as Attachment B to the Development Agreement.
Specifically, Aplus has the right to terminate the Development Agreement immediately, without providing an opportunity to cure the breach, if the developer fails to meet the Development Schedule. This means Aplus can terminate the agreement as soon as they deliver a notice of termination.
This provision highlights the importance of meeting the agreed-upon development milestones. Prospective Aplus developers should carefully review the Development Schedule (Attachment B) and assess their ability to comply with the timelines. Failure to do so can result in the termination of the Development Agreement and the loss of development rights.