What obligations does an Aplus franchisee have regarding site selection (Item 9) and how does this relate to the franchisor's approval process (Item 11)?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | ITEM IN DISCLOSURE DOCUMENT |
|---|---|---|
| a. Site Selection and Acquisition/Lease | APLUS – 5.1, 5.2 Premises – 1.05 | Items 6, 7, 11 and 12 |
5.1. Franchised Business Location and Site Selection
The address of the approved location for the Franchised Business is described, or if not yet identified as of the Effective Date, is described on Attachment 1 ("Key Terms"). You must identify and acquire a site for the APLUS Store within thirty (30) days after the Effective Date of this Agreement. The site must meet Franchisor's then-current site selection criteria, and must otherwise be mutually acceptable to you and to Franchisor. Franchisor will approve or reject your site within thirty (30) days of receiving your application and all required information. Franchisor may assist you in site selection, in its sole discretion, which assistance may include making available to you the services of an internal development management team or a designated third party tenant representative consulting firm. If required, you must use the services of a designated tenant representative consulting firm and pay any fees imposed by the firm. Although Franchisor or its tenant representative may propose sites for your consideration, you understand that ultimate site selection is solely your choice and your responsibility. If an acceptable site is not found by the Franchisee and approved by the Franchisor within ninety (90) days of the Effective Date, then Franchisor reserves the right to terminate this Agreement. Franchisor may utilize a Designated Service Provider to perform any of its duties under this Section 5.1 and Section 5 generally.
- (a) If you do not already have a site for your APLUS Store, we will approve or reject your site selection application within 30 days of receiving it. (Section 5.1 of the Franchise Agreement)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding site selection, as outlined in Item 9 and further detailed in the franchise agreement. Item 9 indicates that site selection and acquisition/lease are franchisee obligations, referencing sections in the APLUS agreement and specific items in the disclosure document.
Specifically, the franchisee must identify and acquire a site for the Aplus Store within thirty days of the agreement's effective date. This site must meet Aplus's current site selection criteria and be mutually acceptable to both the franchisee and Aplus. Aplus has 30 days to approve or reject the franchisee's site application after receiving all necessary information. Aplus may offer assistance in site selection, potentially including an internal development management team or a third-party tenant representative consulting firm. If required, the franchisee must use a designated tenant representative consulting firm and pay their fees.
However, the ultimate responsibility for site selection rests with the franchisee. If an acceptable site is not found and approved within ninety days of the agreement's effective date, Aplus reserves the right to terminate the agreement. This process highlights the importance of proactive site selection by the franchisee and adherence to Aplus's criteria to avoid potential termination of the franchise agreement.
Item 11 states that Aplus will approve or reject the franchisee's site selection application within 30 days of receiving it. This underscores the franchisor's role in the site selection process, ensuring that the proposed location aligns with their strategic objectives and brand standards. The interplay between Item 9 and Item 11 emphasizes the shared responsibility and defined timelines in the site selection process for Aplus franchises.