factual

If Sunoco pays for any utility costs for an Aplus franchise, what is the franchisee's obligation?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

If you fail to perform your obligations under this Lease, including payment of any charges or costs for which you are responsible pursuant to this Lease, Sunoco may in its discretion perform such obligations or pay such items. Such costs or payments shall be deemed additional charges that are due and payable to Sunoco within five (5) days from demand. At its option, Sunoco may also apply toward such costs and payments all or part of the Collateral Security Deposit as provided for in Section 2.04(B).

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

Based on the 2024 Aplus Franchise Disclosure Document, if a franchisee fails to meet their obligations under the lease, including paying charges or costs they are responsible for, Sunoco has the discretion to perform those obligations or pay those items. Any such costs or payments made by Sunoco are considered additional charges.

These additional charges are due and payable to Sunoco within five days of demand. Sunoco also has the option to apply all or part of the Collateral Security Deposit towards these costs and payments, as provided for in Section 2.04(B) of the lease.

This means that if Sunoco covers utility costs that are the franchisee's responsibility, the franchisee must reimburse Sunoco for those costs within five days of receiving a demand for payment. Failure to do so could result in Sunoco using the security deposit to cover the expenses.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.