What happens if an Aplus franchisee fails to adhere to the Development Schedule?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
g 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.
- 4.4.3.
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 time periods during which a franchisee has the right and obligation to construct, equip, open, and operate Aplus stores. This schedule is included as Attachment B to the Development Agreement.
Specifically, Aplus can terminate the Development Agreement immediately, without giving the franchisee an opportunity to correct the failure, if the franchisee fails to meet the Development Schedule. This means Aplus has the right to end the agreement and the franchisee's development rights without any chance to remedy the situation.
This provision highlights the importance Aplus places on franchisees meeting their development obligations. Prospective franchisees should carefully review the Development Schedule in Attachment B and assess their ability to meet those deadlines. They should also consider the potential consequences of failing to meet the schedule, including the immediate termination of their Development Agreement.