What happens to the territory granted in the Aplus franchise agreement upon transfer?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
chised Business using the System, and only the authorized brand or brands and associated Marks specified on the Summary Page.
2.2. Sub-Franchising/Agents
Franchisee shall not sublicense or attempt to sublicense the use of the System or Marks to any person or entity. Except as permitted in Section 18, Franchisee shall not grant any person or entity the right to perform any part of Franchisee's rights or obligations licensed hereunder.
2.3. Non-Exclusive Territory
You will not receive an exclusive territory or any protected territory.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, franchisees do not receive an exclusive or protected territory. Aplus franchisees may face competition from other franchisees, from outlets that Aplus or its affiliates own, or from other channels of distribution or competitive brands that Aplus controls, as well as any reserved rights Aplus may have as per the franchise agreement.
Because Aplus franchisees do not receive an exclusive territory, the transfer of the franchise would not affect any exclusive territory rights. The agreement specifies that a franchisee cannot sublicense or attempt to sublicense the use of the Aplus system or marks to any person or entity, except as permitted in Section 18, and a franchisee cannot grant any person or entity the right to perform any part of the franchisee's rights or obligations licensed under the agreement.
Prospective franchisees should be aware that the lack of an exclusive territory can lead to direct competition from other Aplus franchisees or from Aplus itself. This could impact the profitability and market share of an individual Aplus franchise. It is important to carefully consider the competitive landscape and market conditions before investing in an Aplus franchise.