If an Aplus franchisee damages Sunoco's Equipment and Premises, who is responsible for the repair or replacement?

According to Aplus's 2024 Franchise Disclosure Document, the franchisee is generally responsible for any damage to Sunoco's facilities, Loaned Equipment, and the Premises, including damage caused by third parties. The franchisee must repair or replace any damaged facilities, Loaned Equipment, or Premises. The franchisee is also required to submit a completed Damage Report to Sunoco in the event of any damage to Sunoco's facilities, Loaned Equipment, or Premises. This report must include details such as the names of persons involved, date, time, names of witnesses, names of insurance companies, and the nature and extent of the damages.

Sunoco, however, retains the right to determine how best to repair or replace damaged Equipment or Premises and may require the franchisee to follow its directions for proper repair and/or replacement. If the franchisee does not comply with Sunoco's directions, Sunoco may repair or replace the damaged property to its standards, and the costs will be billed to and paid by the franchisee. Sunoco will also make efforts to recover costs of repair or replacement from persons liable for damages to its property and will reimburse the franchisee for any costs so recovered, but the franchisee retains primary responsibility.

An exception to the franchisee's responsibility exists if the damage is due to normal wear and tear and not from the franchisee's negligence. Additionally, Sunoco is responsible for major repairs and replacements to refrigeration systems, defined generally as those over $250 per occurrence, including repair and/or replacement of compressors, condensers, evaporator coils, etc. However, the franchisee is responsible for maintaining and repairing/replacing/adjusting door hardware, replacing lost keys, changing locks, replacing glass, and replacing overhead door springs.

If the Premises or Loaned Equipment is damaged by fire or other casualty caused directly, or indirectly by the franchisee's negligence or willful misconduct, or that of their agents, employees, or contractors, or by the franchisee's default under any provision of the Lease, the franchisee is responsible, at their sole expense, to repair such damage or rebuild the Premises in accordance with plans and specifications approved by Sunoco. Alternatively, at Sunoco's option, Sunoco may repair or rebuild, and the franchisee shall reimburse Sunoco for all costs thereof.