If an Aplus franchisee is an individual, can they transfer their interest to a business entity?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
on of these facilities (which you acknowledge may be proximate to any Store developed under this Agreement).
- 8.2. Transfer by Individual Developer to Business Entity for Convenience. If you are an individual, you may transfer your interest in this Agreement to a Business Entity for convenience of operation within the first 12 months of this Agreement by signing Franchisor's standard form of assignment and assumption agreement if: (a) the Business Entity is formed solely for purposes of continuing your development rights and obligations; (b) you provide to Franchisor a copy of the Business Entity's formation and governing documents and a certificate of good standing from the jurisdiction under which the Business Entity was formed; (c) you si
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, an individual franchisee can transfer their interest in the Development Agreement to a business entity under specific conditions. This transfer is allowed for convenience of operation within the first 12 months of the agreement.
To complete this transfer, the franchisee must sign Aplus's standard assignment and assumption agreement. The business entity must be formed solely to continue the franchisee's development rights and obligations. The franchisee needs to provide Aplus with copies of the business entity's formation and governing documents, along with a certificate of good standing from the relevant jurisdiction.
Additionally, the franchisee must sign a general release in favor of Aplus, using the form Aplus requires, and pay a $1,500 administrative fee. These conditions ensure that Aplus maintains control over who operates its franchises and that the new entity is properly documented and committed to fulfilling the original agreement's obligations.