What are the potential consequences for an Aplus franchisee who sells prohibited items like drug paraphernalia?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You are expressly prohibited from the display or sale of any adult/sophisticate magazines and/or materials at the APLUS Store. We also reserve the right to restrict you from the displaying or selling other items such as periodicals, videos, drug paraphernalia and other merchandise which may be offensive to the general public, or prohibited by applicable local laws or regulations. You are also expressly prohibited from selling synthetic marijuana (also known as Spice and K-2), drug paraphernalia and "bath salts". Bath salts may be known as Bliss Blue Light, Blue Silk, Charge, Cosmic Blast, Disco Concentrate Bath Salts, Ivory Snow, Ocean Burst, Pure Ivory, Purple Wave, Snow Leopard, Stardust, Tranquility Bath Salts, White Dove, White Knight, White Rush, Zeus 2, Ivory Wave, White Lightening or other names. Further, the sale of drug paraphernalia, such as glass smoking pipes are also prohibited. Sales of these products and any other prohibited product, as Franchisor may designate from time to time, can result in Franchisor's immediate termination of this Agreement.
13.18 Maintenance of Premises and Equipment
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 52–53)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a franchisee who sells prohibited items such as drug paraphernalia faces serious repercussions, including potential termination of their Franchise Agreement. Aplus expressly prohibits the sale of items like adult magazines, synthetic marijuana (Spice and K-2), drug paraphernalia, and bath salts (including variations known as Bliss Blue Light, Blue Silk, Charge, and others).
The FDD emphasizes that selling these prohibited products can lead to immediate termination of the Franchise Agreement by Aplus. This means the franchisee could lose their right to operate the Aplus store and forfeit any associated investment.
Furthermore, the sale of prohibited items can also result in criminal and civil charges against the franchisee. Aplus franchisees must comply with all applicable federal, state, and local laws, rules, and regulations. Failure to do so constitutes a material breach of the Franchise Agreement, giving Aplus the right to terminate the agreement immediately without an opportunity for the franchisee to correct the issue. This underscores the importance of adhering strictly to Aplus's list of prohibited items and staying informed about any updates or changes to these restrictions.