What happens if an Aplus franchisee or owner is convicted of a felony?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus has the right to terminate the Development Agreement with a franchisee, effective immediately upon notice, if the franchisee or any owner is convicted of a felony. This termination also applies if the franchisee or owner pleads no contest to a felony charge.
This provision underscores the importance Aplus places on maintaining a trustworthy and reputable network of franchisees. A felony conviction or a plea of no contest is considered a serious breach of trust that could negatively impact the Aplus brand and system. The immediate termination clause means that the franchisee would not have an opportunity to rectify the situation or appeal the decision before losing their franchise rights.
Beyond felony convictions, Aplus also reserves the right to terminate the agreement if the crime involves moral turpitude or any other offense that Aplus believes is reasonably likely to have an adverse effect on the Aplus system. This broadens the scope of potential violations that could lead to termination, giving Aplus significant discretion in enforcing its standards. Prospective franchisees should be aware of these conditions and ensure they, and any owners involved in the franchise, maintain a clean legal record to avoid jeopardizing their investment.