If Sunoco reconstructs or modernizes the Aplus premises, can they charge additional monthly fees, and what is required before doing so?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (C) Sunoco also reserves the right to enter the Premises to reconstruct or modernize the Premises. This right includes the right to totally tear down and rebuild, change, or add physical structures or other improvements deemed necessary or desirable by Sunoco to facilitate modernization of the APlus facilities and Loaned Equipment on the Premises or to enter upon the Premises to change, alter or modify its service marks, trade dress, service names, and other similar indicia. If Sunoco elects to reconstruct or modernize the Premises, the fees prescribed in Sections 1.03, 1.04, 2.05(A), 2.05(C), and 2.05(D) shall abate to the extent such construction or modernization work renders the Premises not usable for their normal functions. If Sunoco reconstructs or modernizes the Premises, the Term of this Lease shall not be extended. Based upon the scope of the remodeling or reconstruction performed at the Premises, Sunoco reserves the right to charge additional Monthly Fees pursuant to Section 2.05(B). You will be provided prior written notice of the increase in monthly fees.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco reserves the right to reconstruct or modernize the Aplus premises. If Sunoco elects to do so, the fees prescribed in Sections 1.03, 1.04, 2.05(A), 2.05(C), and 2.05(D) of the lease agreement will abate to the extent the construction or modernization renders the premises unusable for their normal functions. The term of the lease will not be extended due to the reconstruction or modernization.
Based on the scope of the remodeling or reconstruction, Sunoco reserves the right to charge additional Monthly Fees pursuant to Section 2.05(B) of the lease agreement. However, Aplus franchisees will receive prior written notice of any increase in monthly fees.
This means that while Sunoco can modernize or reconstruct the premises, which could benefit the Aplus store in the long run, franchisees need to be aware that this may lead to additional monthly fees. The franchisee will be notified in writing beforehand, allowing them to assess the financial impact of the changes. It is important for prospective franchisees to understand the conditions under which these fees can be applied and to factor this potential cost into their financial planning.