How long does Aplus have to exercise its option to purchase the assets of the Aplus franchised business after termination or expiration of the agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor has the right (but not the obligation), for a period of sixty (60) days after termination or expiration of this Agreement, to purchase any or all assets of the Franchised Business including improvements, vehicles, service tools and equipment, supplies and other inventory or equipment. The purchase price shall be equal to the assets' fair market value, as determined by an independent appraiser. If Franchisor elects to exercise this option to purchase, it has the right to set off all amounts due from Franchisee under this Agreement, if any, against the purchase price. If applicable, at Franchisor's request, Franchisee shall assign to Franchisor or its designee Franchisee's interest in the lease for APLUS Store, including Franchisee's interest in all leasehold improvements, without additional compensation. If Franchisor does not request assignment of the lease before or as of the date of expiration or termination of
this Agreement, then within twenty (20) days after termination or expiration of this Agreement, Franchisee shall modify the APLUS Store Premises, including, without limitation, the changing of the color scheme and other distinctive design features, as may be necessary to distinguish the appearance of the Franchised Business from that of other APLUS franchisee owned stores, and shall make such specific additional changes to the Franchisee's APLUS Store as Franchisor may reasonably request for that purpose. If Franchisee fails to de-identify the APLUS Store premises within a reasonable time, Franchisee hereby grant a license to Franchisor's personnel and designees to enter upon the APLUS Store premises and take all actions necessary to de-identify the premises including, without limitation, removing all signage, advertising materials, trade dress, displays, proprietary equipment, and Proprietary Products, and any other items which display the Marks or reflect Franchisor's trade dress. Franchisor may charge a reasonable fee for its services; Franchisee agrees to pay the fee on demand and to reimburse Franchisor for all deidentification related costs that it incurred.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus has the right, but not the obligation, to purchase the assets of the franchised business for a period of sixty days after the termination or expiration of the franchise agreement. These assets include improvements, vehicles, service tools and equipment, supplies, and other inventory or equipment.
The purchase price for these assets will be equal to their fair market value, as determined by an independent appraiser. If Aplus chooses to exercise this purchase option, it can offset any amounts owed by the franchisee under the agreement against the purchase price.
Furthermore, if applicable, Aplus can request the franchisee to assign their interest in the lease for the Aplus store, including any leasehold improvements, without additional compensation to Aplus or its designee. If Aplus does not request assignment of the lease before the date of expiration or termination, the franchisee is responsible for de-identifying the Aplus store premises within twenty days after termination or expiration of the agreement. This includes changing the color scheme and other distinctive design features to differentiate it from other Aplus franchisee-owned stores.