Does Aplus mandate that franchisees obtain back office software and hardware from specific sources?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to purchase the following items only from our Approved Suppliers or Designated Specific Suppliers:
- Food service products and suppliesincluding all APLUS and SUNOCO proprietary breakfast and sandwiches and other food items, equipment, cups, wrappings, containers and napkins,
- Perishable food products offered in APlus stores, including sandwiches, roller grill items, baked goods, salads, foods served or taken hot, dairy (including milk, flavored milk and yogurt), bread, and such other perishable food products we determine only from Approved Suppliers,
- Our designated proprietary, trademark, trade dress, service mark, logo, and insignia items, including retail merchandise,
- Décor, supplies, and other items that bear the APLUS trademarks,
- Uniforms,
- Back office software and hardware,
- Electronic Point-of-Sale (EPOS) and Data Transmission and Telecommunications Equipment,
- Signs, promotional materials,
- Store equipment,
- Interior/exterior décor items, and
- Fixtures, furnishings and other materials required for the operation of the APLUS Store.
In the event of an APLUS Store conversion, the existing equipment will be reviewed by us for conformance to our specifications. Before commencing operations, the approval for the continued use of existing equipment must be obtained by us.
The purchase of the items described in this Item 8 from Approved Suppliers can reasonably represent up to 40% - 55% of your initial investment in your APLUS Store. Sunoco may derive revenue from the lease or sale of products and services to you. In the year ending December 31, 2023, Sunoco's revenues from the sale of these products and services were a de minimus percentage of Sunoco's total revenues.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are required to purchase back office software and hardware from Approved Suppliers or Designated Specific Suppliers. This mandate ensures uniformity and consistency across all Aplus stores.
This requirement means that franchisees do not have the freedom to choose their own vendors for these essential items. Instead, they must select from a list of suppliers approved by Aplus. This list is incorporated in the System Manual. Aplus retains the right to remove suppliers from the approved list, providing written notice to the franchisee.
The FDD states that purchases from Approved Suppliers can represent a significant portion of the franchisee's initial investment, estimated to be between 40% and 55%. While the FDD mentions that Sunoco may derive revenue from these required purchases, it also notes that in 2023, these revenues were a de minimus percentage of Sunoco's total revenues.
If a franchisee wishes to use a supplier that is not on the approved list, they can submit a written request for approval to Aplus. However, Aplus has sole discretion over such approvals and may inspect the supplier's facilities and require samples for testing, potentially incurring charges for the inspection and testing. All approved suppliers must sign an agreement indemnifying Aplus for their products, actions, and services.