If an Aplus franchisee chooses to participate in Sunoco's accounting system, what is the maximum amount Sunoco's costs can be per month to provide the system?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ents, revenues, expenses, and any correspondence, notes, memoranda, audits, business records, or internal accounts within said third parties' possession, custody or control, and to continue to release such records to Franchisor on a monthly basis for the length of the unexpired term of this Agreement or until such time as Franchisor withdraws its request. Franchisee shall execute all documents necessary to facilitate the release of records referenced herein to Franchisor.
12.8. Franchisor's Accounting System
Sunoco may make available to you certain accounting systems. If you choose to participate, you must pay to Sunoco the fees charged by the third party software plus Sunoco's costs to provide them to you, which Sunoco's costs may not exceed one hundred dollars ($100) per month. However, you understand and agree as follows:
- (a) You are solely responsible for maintaining accurate business records and Sunoco does not verify their accuracy. In addition, the information provided or required under this system may or may not be consistent with financial information provided or required by Federal, State or local taxing authorities. In that regard, you need to consult with your accountant and/or tax advisor;
- (b) You are required to enter all sales, costs of sales, and business expenses into the backoffice system. Sunoco reserves the right, in its sole discretion, to change or modify the required accounting and bookkeeping procedures in the Manual; (c) Sunoco will have access to reports regarding merchandising sales, margin and sales mix data compiled on your APLUS Store; (d) Sunoco shall have the right to have access to all profit and loss statements, balance sheets and supporting documentation directly from you or from the back office or accounting system;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee chooses to participate in Sunoco's accounting system, they must pay the fees charged by the third-party software provider, in addition to Sunoco's costs to provide the system. However, Sunoco's costs are capped at a maximum of $100 per month.
This means that while the franchisee will bear the expense of the software itself, Aplus limits the additional administrative costs they charge for managing the system. This could be beneficial for franchisees seeking a streamlined accounting solution, as it provides a degree of cost certainty regarding Sunoco's administrative overhead.
However, the FDD also stipulates that the franchisee is solely responsible for maintaining accurate business records, and Sunoco does not verify their accuracy. The franchisee should consult with their own accountant and/or tax advisor to ensure compliance with all applicable regulations. Sunoco also reserves the right to change or modify the required accounting and bookkeeping procedures in the Manual, and can terminate or change the back office or accounting system with a minimum of thirty days' notice.