If the debtor is a partnership, to whom does the Aplus Guaranty extend?

According to Aplus's 2024 Franchise Disclosure Document, if the debtor is a partnership or other association, the Guaranty extends to the person or persons carrying on the business conducted by the debtor. This applies regardless of any changes in the name or membership of the debtor.

In practical terms, this means that if an Aplus franchise is owned by a partnership, the guaranty agreement remains in effect even if the partners change or the partnership's name is altered. The individuals currently operating the business are bound by the guaranty. This provision ensures that Sunoco, the franchisor, maintains continuous financial protection regardless of internal changes within the franchisee's business structure.

For a prospective Aplus franchisee, this highlights the importance of understanding the long-term implications of the guaranty. If you are entering into a franchise agreement as part of a partnership, you should be aware that the guaranty will likely extend to whoever is running the business at any given time. This could affect your liability and financial obligations should the business encounter difficulties.