If related agreements remain in effect after the termination or nonrenewal of the Aplus Franchise Agreement, what obligations continue for the franchisee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| other agreement | ||
| for the APLUS Store to Franchisor and shall | ||
| notify the telephone company and all listing | ||
| agencies of the termination or expiration of | ||
| Franchisee's right to use any telephone | ||
| numbers or facsimile numbers associated | ||
| with the Marks and shall authorize transfer of | ||
| same to or at | ||
| the direction of Franchisor; | ||
| (viii) comply with all other applicable; (ix) at | ||
| our option, assume your lease (if applicable) | ||
| and/or purchase certain APLUS Store assets. | ||
| provisions of the franchise agreement. | ||
| If, by mutual agreement, the related | ||
| agreements | ||
| remain in effect after the | ||
| termination or nonrenewal of the APLUS | ||
| Franchise Agreement, your obligat |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–64)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if related agreements remain in effect after the termination or nonrenewal of the Aplus Franchise Agreement, the franchisee's obligations under these agreements continue. The franchisee may also be obligated to pay additional rent to Aplus.
This means that even after the main franchise agreement ends, franchisees must still adhere to the terms of any other agreements they have with Aplus, such as lease agreements or supply contracts. These obligations could include ongoing payments, adherence to specific operational standards, or other requirements outlined in those separate agreements.
For a prospective Aplus franchisee, this highlights the importance of carefully reviewing all related agreements in addition to the main franchise agreement. Franchisees should understand the terms of these agreements and how they might extend beyond the termination of the franchise. It is also important to note that the continuation of these agreements is by mutual agreement between Aplus and the franchisee.