If Sunoco reconstructs or modernizes the Aplus Premises, will the Term of the Lease be extended?
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, if Sunoco elects to reconstruct or modernize the Aplus Premises, the term of the lease will not be extended. However, during the reconstruction or modernization, the fees outlined in Sections 1.03, 1.04, 2.05(A), 2.05(C), and 2.05(D) of the lease will be abated to the extent the construction renders the premises unusable for their normal functions.
Sunoco also reserves the right to charge additional monthly fees based on the scope of the remodeling or reconstruction, as per Section 2.05(B). The franchisee will receive prior written notice of any increase in monthly fees. This means that while the franchisee will not benefit from an extended lease term due to the reconstruction, they may experience a temporary reduction in certain fees during the construction period.
However, Aplus franchisees should also be aware that Sunoco is not liable for any interruption of business or loss of profits resulting from the exercise of its rights to enter and reconstruct or modernize the premises, provided it is done in a reasonable manner. This highlights a potential risk for franchisees, as they may experience business disruptions during any reconstruction or modernization efforts undertaken by Sunoco.