If any part of the lease agreement is not consistent with the law, what are Aplus franchisees and Sunoco required to do?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
1.30 Termination or Nonrenewal
Sunoco's Right to Terminate or Nonrenew
- (A) Except as provided by law, Sunoco may, in addition to any other remedies it may have and subject to the valid requirements of any applicable statute, terminate or nonrenew this Lease if any default or violation under the Motor Fuel Supply Agreement results in grounds for termination or nonrenewal as set forth in the Petroleum Marketing Practices Act, 15 U.S.C. § 2801 et seq. ("PMPA"), or if any default under the APlus Franchise Agreement results in grounds for termination or nonrenewal of that agreement, or upon the occurrence of any of the following:
- (1) your failure to exert good faith efforts to comply with the provisions of this Lease, the APlus Franchise Agreement, the Motor Fuel Supply Agreement, or any related agreement between you and Sunoco, or between you and a third party contractor that performs services under this Lease, following written notice to you from Sunoco of such failure and a reasonable opportunity to exert good faith efforts to comply with such provisions;
- (2) unlawful, fraudulent, or deceptive acts or practices or criminal misconduct by you, your employees, or representatives relevant to the operation of the Premises;
- (3) your misrepresentations or misstatements that induce Sunoco to enter into this Lease;
(4) the sale, display, rental, or distribution at the APlus Store of prohibited merchandise or of any merchandise or service that Sunoco has notified you is of a quality that is not consistent with the favorable image of the Franchise;
(5) a transfer or attempted transfer of this Lease in a manner that is not in accordance with Section 2.22 herein:
(6) operation of the Premises in a manner hazardous to public health or safety, your failure to comply with federal, state, or local laws or regulations relevant to the operation of the APlus Store, or your loss of the right under applicable laws or regulations to conduct business at the Premises;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, Sunoco has the right to terminate or nonrenew the lease agreement if any default or violation under the Motor Fuel Supply Agreement results in grounds for termination or nonrenewal as set forth in the Petroleum Marketing Practices Act, 15 U.S.C. § 2801 et seq. ("PMPA"). This also applies if any default under the Aplus Franchise Agreement results in grounds for termination or nonrenewal of that agreement.
Specifically, Sunoco can terminate or nonrenew the lease if the franchisee fails to exert good faith efforts to comply with the provisions of the lease, the Aplus Franchise Agreement, the Motor Fuel Supply Agreement, or any related agreement, following written notice from Sunoco and a reasonable opportunity to comply. Other grounds for termination or nonrenewal include unlawful, fraudulent, or deceptive acts or practices, criminal misconduct by the franchisee, their employees, or representatives, misrepresentations or misstatements that induce Sunoco to enter into the lease, the sale, display, rental, or distribution of prohibited merchandise, a transfer or attempted transfer of the lease that is not in accordance with specified sections, and operation of the premises in a manner hazardous to public health or safety, failure to comply with relevant laws or regulations, or loss of the right to conduct business at the premises.
This means that Aplus franchisees must ensure they operate their business in full compliance with all applicable laws and agreements to avoid potential termination or nonrenewal of their lease. It is crucial for franchisees to understand and adhere to the terms of the lease, the Aplus Franchise Agreement, and the Motor Fuel Supply Agreement, as well as all relevant federal, state, and local laws and regulations. Failure to do so could result in the loss of their franchise and business location.