If an Aplus franchisee is responsible for damage to the Premises or Loaned Equipment, are the fees prescribed in Sections 1.03 and 1.04 still payable?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You are responsible for any and all damage to the Loaned Store Equipment and the Premises, including that caused by third parties. You must repair or replace any Loaned Store Equipment, other
equipment, buildings, and fixtures at the Premises so damaged. Franchisor reserves the right to determine how best to repair or replace damaged Store equipment, Loaned Store Equipment, or Premises, and may require you to follow its directions as to proper repair and/or replacement. Should you fail to comply with Franchisor's directions, Franchisor or its agents may repair or replace damaged property to its standards, costs of which will be billed to and paid by you.
PREMISES LEASE
GENERAL PROVISIONS
- 1.11 Description of Property; Loaned Equipment; Trademarks
- (A) In consideration of your payment of the Monthly Fees required by Sections 1.03 and 1.04 and the performance of your other obligations set forth herein, Lessor hereby leases to you and you hereby lease from Lessor the Premises located at the address set forth in Section 1.01, together with all buildings, improvements, and appurtenances situated thereon or pertaining thereto (hereinafter collectively referred to as the "Premises"), except such portion of the Premises as Lessor designates now or in the future for the installation of and use as an Electronic Banking Machine(s) (such portion hereinafter referred to as the "ATM" site). The essential purpose of this Lease is for the Premises to be used as an APlus mini market or APlus Express and where applicable a service station selling Sunoco branded Motor Fuel(s). "Motor Fuel(s)" includes automotive gasoline usable as a motor vehicle fuel, excluding without explicit written approval of Sunoco the following: diesel fuel, kerosene, and fuels that are gaseous at standard temperature and pressure. The premises include underground storage
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are responsible for any damage to the Loaned Store Equipment and the Premises, including damage caused by third parties. The franchisee must repair or replace any Loaned Store Equipment, other equipment, buildings, and fixtures at the Premises that are damaged. Aplus retains the right to determine how best to repair or replace damaged Store equipment, Loaned Store Equipment, or Premises, and may require the franchisee to follow its directions as to proper repair and/or replacement. If the franchisee fails to comply with Aplus's directions, Aplus or its agents may repair or replace damaged property to its standards, and the costs will be billed to and paid by the franchisee.
Section 1.11 (A) of the Premises Lease states that in consideration of the franchisee's payment of the Monthly Fees required by Sections 1.03 and 1.04 and the performance of the franchisee's other obligations, the Lessor leases to the franchisee the Premises. The essential purpose of this Lease is for the Premises to be used as an Aplus mini market or Aplus Express and where applicable a service station selling Sunoco branded Motor Fuel(s).
While the FDD states that the franchisee is responsible for damages, it does not explicitly state whether the fees prescribed in Sections 1.03 and 1.04 are still payable during the period of damage and repair. A prospective franchisee should clarify with Aplus whether these fees are still required during such times.