If Aplus assigns its obligations, what must the assignee do?

According to Aplus's 2024 Franchise Disclosure Document, Aplus has the right to assign its rights or delegate the performance of any portion or all of its rights or obligations under the Development Agreement to third-party designees, an area representative (if applicable), or independent contractors without the prior written consent of the developer (franchisee). If Aplus assigns its rights to receive any amount under the agreement to any third party, the developer will be liable for all compliance and shall make such payments directly to the designated third party.

This means that if Aplus assigns its right to receive payments to a third party, the franchisee is obligated to make all payments directly to that third party and ensure compliance with the payment terms. This assignment does not require the franchisee's prior written consent, giving Aplus considerable flexibility in managing its financial interests in the agreement.

For a prospective Aplus franchisee, this clause highlights the importance of understanding that the financial relationship could shift to a different entity during the term of the agreement. While the core obligations of Aplus remain, the franchisee must be prepared to adapt to new payment procedures and maintain compliance with the assignee's requirements. It is crucial to stay informed of any such assignments to avoid misdirected payments or potential breaches of contract.