How many noticed occasions of failure are required to trigger a default under the Aplus franchise agreement?

According to Aplus's 2024 Franchise Disclosure Document, there are multiple scenarios where repeated failures can lead to a default under the franchise agreement. One such scenario involves failing to comply with the same obligation on two or more separate noticed occasions, regardless of the timeframe. Additionally, receiving two or more default notices within a 12-month period for any violation of the franchise agreement or the System Standards can also trigger a default.

Another scenario involves failing to submit reports or other information when due, or failing to pay any Royalty Fee, Marketing Fee, amounts due for purchases from Aplus, or other payment when due to Aplus or any Affiliate, on two or more separate occasions within any period of twelve consecutive months. This applies whether or not such failures to comply are corrected after notice is delivered to the franchisee.

Furthermore, Aplus can declare a default if a franchisee violates any health or safety law, ordinance, or regulation, or operates the Aplus store in a manner that presents a health or safety hazard to its customers, employees, or the public on two or more occasions. Finally, failing to comply with any provision of the franchise agreement three or more times in a twelve-month period, whether or not cured, also constitutes a default. These stipulations highlight the importance of consistent compliance with the Aplus franchise agreement and all applicable standards and regulations to avoid potential termination of the franchise agreement.