What happens to the Aplus lease if Sunoco loses the right to grant possession of the premises?

According to Aplus's 2024 Franchise Disclosure Document, the loss of Sunoco's right to grant possession of the premises through the expiration of an underlying lease is a cause for termination of the lease agreement. Specifically, if Sunoco loses its right to grant possession, the Aplus franchisee's lease can be terminated.

This condition protects Sunoco. If Sunoco's own lease or ownership rights to the property expire, they are not obligated to maintain the Aplus franchise lease. This clause allocates the risk of property rights issues to the franchisee, who could lose their business location if Sunoco's property rights are compromised.

Prospective Aplus franchisees should be aware of this termination condition and consider the stability of Sunoco's underlying lease or property ownership. It would be prudent to inquire about the terms of Sunoco's lease for the premises and any potential risks to its continuation. Franchisees may also want to negotiate terms that provide some protection or compensation in the event of such a termination, although the FDD does not indicate any such provisions are standard.