Can the non-solicitation restriction be waived by Aplus, and if so, how?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.3.2. Except as otherwise approved in writing by Franchisor, neither Franchisee, nor any holder of a legal or beneficial interest in Franchisee, nor any officer, director, executive, manager, or member of the professional staff of Franchisee, shall, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person or entity solicit or otherwise attempt to induce or influence any customer or other business associate of Franchisor and or APLUS and/or SUNOCO franchisees to terminate or modify his, her or its business relationship with APLUS and/or SUNOCO; or
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the non-solicitation restriction can be waived, but only if Aplus provides written approval. Specifically, the FDD states that franchisees, or anyone with interest in the franchisee, including officers and managers, cannot solicit or attempt to influence any customer or business associate of Aplus or its franchisees to terminate or modify their business relationship with Aplus or Sunoco. This restriction applies for two years after the termination or expiration of the franchise agreement, regardless of the reason for termination.
This restriction is in place to protect Aplus's trade secrets, goodwill, and confidential information, as well as to maintain its relationships with other franchisees. It also serves to protect Aplus against the costs incurred in training the franchisee and their staff. The two-year period during which the non-solicitation restriction is in effect can be extended if the franchisee is not in compliance with the agreement.
For a prospective franchisee, this means that after the franchise agreement ends, they are limited in their ability to solicit customers or business associates of Aplus. However, this restriction can be lifted if Aplus provides written approval, offering some flexibility. It is important for franchisees to understand the terms of this restriction and to seek written approval from Aplus if they wish to engage in any activities that might be considered a violation of the non-solicitation agreement.