Can Aplus reduce the number of stores a franchisee can establish if they are in default of the agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If you are in Default of this Agreement, Franchisor may, in its sole discretion, elect to reduce the number of Stores which you may establish pursuant to the Development Schedule.
If Franchisor elects to exercise this remedy as set forth above, you agree to continue to develop Stores in accordance with your rights and obligations under this Agreement, as modified.
Franchisor's exercise of its remedy under this Section 9.7 shall not constitute a waiver by Franchisor to exercise Franchisor's option to terminate this Agreement at any time with respect to a subsequent event of default of a similar or different nature
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus has the right to reduce the number of stores a franchisee can establish under the Development Schedule if the franchisee is in default of the Development Agreement.
Aplus, in its sole discretion, can elect to reduce the number of stores a franchisee may establish if the franchisee defaults on the agreement. However, even with this reduction, the franchisee must continue to develop stores in accordance with their rights and obligations under the modified agreement.
It is important to note that Aplus's decision to reduce the number of stores does not prevent them from terminating the agreement later if there is a subsequent default. This means that even if Aplus chooses to reduce the store count as a remedy, they still retain the right to terminate the agreement for future defaults, regardless of whether those defaults are similar to the original one or different in nature.