If Aplus Franchisor assigns its functions to another entity, what obligation does the assignee have?

According to Aplus's 2024 Franchise Disclosure Document, Aplus has the right to assign its rights or delegate the performance of its obligations under the Franchise Agreement to third-party designees, area representatives, or independent contractors without the franchisee's prior written consent. If Aplus assigns its rights to receive any amount under the agreement to a third party, the franchisee is obligated to ensure compliance and make payments directly to that designated third party.

This means that as a franchisee, you may be required to remit payments, such as royalties or other fees, directly to a third party if Aplus assigns its rights to receive those payments. This could be an area representative or another entity that Aplus contracts with. It's important to stay informed of any such assignments and to comply with the new payment instructions to avoid any issues with Aplus.

This clause protects Aplus's ability to manage its business and financial interests by allowing it to transfer payment rights to other parties. While Aplus does not need the franchisee's consent to make these assignments, the franchisee must comply with the new payment arrangements once notified. Franchisees should pay close attention to any notices from Aplus regarding changes in payment direction to ensure they remain in good standing under the Franchise Agreement.