If Aplus requires a franchisee to modify or discontinue the use of a Mark, is Aplus required to reimburse the franchisee for expenses incurred in modifying or discontinuing the use of the Mark, or for any loss of goodwill?

According to Aplus's 2024 Franchise Disclosure Document, Aplus is not required to reimburse a franchisee for expenses incurred in modifying or discontinuing the use of a Mark, nor for any loss of goodwill associated with a modified or discontinued mark. Additionally, Aplus will not reimburse franchisees for any expenditures made to promote a modified or substitute Mark.

This means that if Aplus decides that a franchisee needs to change or stop using a particular trademark, service mark, or commercial symbol, the franchisee will bear the full financial burden of making those changes. This includes the costs of physically altering signage, marketing materials, and other branded items, as well as any potential loss of business or reputation resulting from the change.

This policy is not uncommon in franchising, as franchisors typically retain control over their brand and trademarks. However, it's important for prospective Aplus franchisees to understand that they may incur unexpected expenses if Aplus mandates a change to its branding or marketing strategy. Franchisees should factor this potential cost into their financial planning and consider negotiating some form of financial assistance or compensation in the franchise agreement.