If an Aplus franchisee fails to meet the Development Schedule, what are the consequences?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
g the term of this Agreement, you shall develop a replacement Store within a reasonable time (not to exceed 180 days) thereafter.
- 4.4.2. Your failure to adhere to the Development Schedule (including any extensions thereof, approved by Franchisor in writing) or to any time period for the development of replacement Stores is a material breach of this Agreement.
- 4.4.3.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, failing to adhere to the Development Schedule is considered a material breach of the Development Agreement. The Development Schedule outlines the time periods during which the franchisee has the right and obligation to construct, equip, open, and operate Aplus stores. This schedule is detailed in Attachment B of the Development Agreement.
Specifically, Aplus can terminate the Development Agreement immediately, without giving the franchisee an opportunity to correct the failure, if the franchisee fails to meet the Development Schedule. This means Aplus has the right to end the agreement and revoke the franchisee's development rights if the franchisee does not open the required number of stores within the specified timeframes.
This provision highlights the importance of franchisees meeting their development obligations. Prospective Aplus franchisees should carefully review Attachment B of the Development Agreement to fully understand the required Development Schedule and ensure they have the resources and capabilities to meet those obligations. Failing to do so can result in the termination of the Development Agreement and the loss of the franchise opportunity.