Does Aplus have the option to purchase the assets of the franchised business upon termination or expiration of the Aplus franchise agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor and or APLUS and/or SUNOCO franchisees to terminate or modify his, her or its business relationship with APLUS and/or SUNOCO; or
- 17.3.3 In furtherance of this Section 17, Franchisor has the right to require certain individuals to execute standard form nondisclosure agreements in a form the same as or similar to the Nondisclosure Agreement attached as Attachment 2.
- 17.3.4 The two (2) year period shall be tolled during any event of non-compliance.
- 17.4. Franchisor's Option to Purchase Certain Business Assets and Assume Lease
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.
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 within 60 days of 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 will be based on the fair market value of the assets, as determined by an independent appraiser.
If Aplus chooses to exercise this purchase option, it can offset any amounts owed by the franchisee against the purchase price. Additionally, Aplus can request the franchisee to assign their interest in the APLUS Store lease, including any leasehold improvements, without additional compensation.
If Aplus does not request assignment of the lease, the franchisee is responsible for de-identifying the APLUS Store premises within 20 days after termination or expiration. This includes changing the color scheme and other distinctive design features to differentiate it from other Aplus locations. If the franchisee fails to do so, Aplus has the right to enter the premises and take necessary actions to de-identify it, charging the franchisee a reasonable fee for these services and reimbursement for related costs.