Who is primarily responsible for costs of repair or replacement of damaged property at an Aplus franchise location?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
control of the Equipment and Premises, has primary responsibility to keep and maintain the Equipment and Premises in good order and condition at all times.
- (B) Franchisee is responsible for informing Sunoco in a timely manner of any Equipment failure or any need for repair or replacement of Equipment or Premises. Sunoco reserves the right, following proper notification by Franchisee, to determine in Sunoco's sole discretion whether a need for repair or replacement of Equipment or Premises exists.
- (C) Notification by Franchisee to Sunoco of a need for repair, and assumption by Sunoco of responsibility for repair, shall not relieve Franchisee of any liability incurred to third parties, including Franchisee's employees, customers, invitees, and the general public, because of a state of disrepair.
- (D) Franchisee is responsible for any and all damage to Sunoco's Equipment and Premises, including that caused by third parties. Franchisee must repair or replace any Equipment, buildings, and fixtures at the Premises so damaged. Sunoco reserves the right to determine how best to repair or replace damaged Equipment or Premises. Sunoco may require Franchisee to follow its directions as to proper repair and/or replacement. Should Franchisee not comply with Sunoco's directions, Sunoco or its agents may repair or replace damaged property to its standards, costs of which will be billed to and paid by Franchisee.
- (E) Franchisee will submit to Sunoco a completed Damage Report, in the event of any damage to Sunoco's Equipment or Premises. Such Damage Report must include names of persons involved, date, time, names of witnesses, names of insurance companies, and nature and extent of damages.
- (F) Sunoco will make diligent efforts to recover costs of repair or replacement from persons liable for damages to its Equipment or Premises, and will reimburse Franchisee for any costs to recover, but Franchisee retains primary responsibility, as stated above.
- (G) Sunoco reserves the right, without liability to Franchisee, to change these Maintenance provisions at any time, upon giving Franchisee thirty (30) days' prior written notice of such change.
- 1.39 Franchisee Maintenance Responsibility Schedule.
- (A) The following schedule specifies whether the Franchisee or Sunoco is responsible for repairing, maintaining, and/or replacing the listed items.
- (B) Sunoco's responsibility for repairs to or replacement of the designed items listed below is limited to repairs resulting from normal wear and tear and not from Franchisee's negligence or
FRANCHISEE MAINTENANCE RESPONSIBILITY SCHEDULE
Franchisee's failure to keep and maintain same in good order and condition at all times or repairs necessitated by damages caused by Franchisee's employees, customers, invitees, vandals, or any other parties.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee is primarily responsible for the costs of repair or replacement of damaged property at the franchise location. Specifically, the franchisee is responsible for any and all damage to Sunoco's Equipment and Premises, including damage caused by third parties. This includes the franchisee's responsibility to repair or replace any equipment, buildings, and fixtures at the Premises that are damaged.
Sunoco, however, retains the right to determine how best to repair or replace damaged Equipment or Premises and may direct the franchisee on how to properly execute the repair or replacement. If the franchisee fails to comply with Sunoco's directions, Sunoco or its agents may repair or replace the damaged property to its standards, and the costs will be billed to and paid by the franchisee. In the event of any damage to Sunoco's Equipment or Premises, the franchisee must submit a completed Damage Report to Sunoco, including details such as names of persons involved, date, time, names of witnesses, names of insurance companies, and nature and extent of damages.
While Sunoco will attempt to recover costs of repair or replacement from liable parties and reimburse the franchisee for recovery costs, the franchisee retains primary responsibility for the costs. However, Sunoco's responsibility for repairs or replacements is limited to those resulting from normal wear and tear and not from the franchisee's negligence or failure to maintain the property. The Franchisee Maintenance Responsibility Schedule further delineates specific responsibilities between Sunoco and the franchisee for various items. For example, the franchisee is responsible for replacing all broken or cracked glass in doors and windows, cleaning up broken glass, and placing warning signs until the glass is replaced. The franchisee is also responsible for maintaining and repairing/replacing/adjusting door hardware, replacing lost keys, and changing locks as required.
In terms of refrigeration systems, the franchisee is responsible for major repairs and replacements of walk-in coolers and freezers, generally defined as those over $250 per occurrence, including repair and/or replacement of compressors, condensers, evaporator coils, and exchangers. This allocation of responsibility highlights the franchisee's significant financial obligation to maintain and repair the Aplus location, with Sunoco primarily covering normal wear and tear, unless the damage is due to the franchisee's negligence.