Can Aplus purchase or affiliate with a competitive franchise network?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.2.3. Nothing in this Agreement prohibits or restricts Franchisor from (a) owning, acquiring, establishing, operating, or granting franchise rights for one or more other businesses under a different trademark or service mark (i.e., marks other than APLUS or SUNOCO), whether or not the business is the same as or competitive with Stores; or (b) owning, operating, or franchising one or more businesses offering products or services other than similar to those provided in the Franchise Agreement under the name APLUS, SUNOCO, or some derivative of the Marks.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus retains the right to engage in other business ventures, even those that might compete with its franchisees. Specifically, Aplus is not restricted from owning, acquiring, establishing, operating, or franchising other businesses under different trademarks, regardless of whether these businesses are similar to or competitive with Aplus stores.
Furthermore, Aplus can own, operate, or franchise businesses offering different products or services under names other than Aplus or Sunoco. This clause protects Aplus's ability to diversify and explore other business opportunities without being constrained by its franchise agreements.
For a prospective franchisee, this means that Aplus could potentially own or be affiliated with a competing business, which could impact the franchisee's market share or profitability. It is important for franchisees to understand that their development area is not exclusive and that Aplus has broad rights to operate or franchise other businesses, even if they compete directly with the franchisee's Aplus store.