What happens if an Aplus developer transfers their interest in a store?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If, during the term of this Agreement, you transfer your interest in a Store in accordance with the terms of the applicable Franchise Agreement for the Store, the transferred Store will continue to be counted in determining whether you have complied with the Development Schedule so long as it continues to be operated as the Store with the Authorized Brand.
If the transferred Store ceases to be operated as a Store with the Authorized Brand during the term of this Agreement, you shall develop a replacement Store within a reasonable time (not to exceed 180 days) thereafter.
- 4.4.2.
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.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a developer transfers their interest in a store, the transferred store will still count towards meeting the development schedule, provided it continues to operate as an Aplus store with the authorized brand. However, if the transferred store ceases to operate as an Aplus store during the term of the agreement, the developer is required to develop a replacement store within a reasonable timeframe, not exceeding 180 days.
Failure to adhere to the development schedule, including any approved extensions or the specified time for developing replacement stores, constitutes a material breach of the Development Agreement. This means Aplus could take action against the developer for not meeting their obligations.
It is important for prospective Aplus developers to understand these conditions, as they highlight the ongoing commitment required to maintain the development schedule. Developers must be prepared to either ensure the continued operation of transferred stores under the Aplus brand or be ready to develop replacement stores within the given timeframe to avoid breaching the agreement. This requirement ensures that Aplus maintains its brand presence and growth according to the agreed-upon development plan.