If the Aplus Franchisor terminates the agreement, when does the termination become effective?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
17. RIGHTS AND DUTIES UPON EXPIRATION OR TERMINATION
17.1. Actions to be Taken
Except as otherwise provided herein, upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall terminate and Franchisee shall:
- 17.1.1. Immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
- 17.1.2. Cease to use the Trade Secrets or other Confidential Information, the System and the Marks including, without limitation, all slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
- 17.1.3. Take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city or county authorities which contains the name APLUS or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
- 17.1.4. Pay all sums owing to Franchisor and any Affiliate, including amounts due under Section 17.2, below. In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs and expenses, including reasonable attorneys' fees, with respect to litigation, arbitration, appellate or bankruptcy proceedings, unpaid Royalty Fees, and any other amounts due to Franchisor or any Affiliate;
Prior to the termination of the Agreement, if the Franchisee fails to pay any amounts owed to the Franchisor or its affiliates, fails to comply with any term of this Agreement or notify the Franchisor that the Franchised Business is closing, then in addition to the Franchisor's right to terminate this Agreement or to bring a claim for damages, the Franchisor has the option to:
(a) Remove the listing of the Franchised Business from all advertising published or approved by the Franchisor;
(b) Cease listing the Franchised Business on any technology platforms;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the agreement and all rights granted to the franchisee terminate, except as otherwise provided in the agreement. The franchisee must immediately cease operating the franchised business and cannot represent themselves as a current or former Aplus franchisee. They must also stop using Aplus's trade secrets, confidential information, the system, and the marks, including slogans, symbols, logos, advertising materials and any other items associated with the marks.
Additionally, the franchisee must take necessary actions to cancel or assign any assumed name registrations containing the Aplus name or marks to Aplus, providing satisfactory evidence of compliance within 30 days of termination or expiration. The franchisee is also responsible for paying all sums owed to Aplus and its affiliates, including damages, costs, expenses, attorney's fees, unpaid royalty fees, and any other amounts due.
Prior to the termination of the Agreement, if the Franchisee fails to pay any amounts owed to the Franchisor or its affiliates, fails to comply with any term of this Agreement or notify the Franchisor that the Franchised Business is closing, then in addition to the Franchisor's right to terminate this Agreement or to bring a claim for damages, the Franchisor has the option to remove the listing of the Franchised Business from all advertising published or approved by the Franchisor and cease listing the Franchised Business on any technology platforms.