exception

Regarding Aplus franchises, does occupying the premises before Sunoco's official lease acceptance waive Sunoco's requirement for approval?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

if Franchisee's jurisdiction requires a termination notice period longer than thirty (30) days, the period will be the minimum notice period required by the laws of such jurisdiction. In the latter case, all obligations of Franchisee shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of the Agreement shall take effect upon termination of the Interim Period.

5. FRANCHISED BUSINESS

5.1. Franchised Business Location and Site Selection

The address of the approved location for the Franchised Business is described, or if not yet identified as of the Effective Date, is described on Attachment 1 ("Key Terms"). You must identify and acquire a site for the APLUS Store within thirty (30) days after the Effective Date of this Agreement. The site must meet Franchisor's then-current site selection criteria, and must otherwise be mutually acceptable to you and to Franchisor. Franchisor will approve or reject your site within thirty (30) days of receiving your application and all required information. Franchisor may assist you in site selection, in its sole discretion, which assistance may include making available to you the services of an internal development management team or a designated third party tenant representative consulting firm. If required, you must use the services of a designated tenant representative consulting firm and pay any fees imposed by the firm. Although Franchisor or its tenant representative may propose sites for your consideration, you understand that ultimate site selection is solely your choice and your responsibility. If an acceptable site is not found by the Franchisee and approved by the Franchisor within ninety (90) days of the Effective Date, then Franchisor reserves the right to terminate this Agreement. Franchisor may utilize a Designated Service Provider to perform any of its duties under this Section 5.1 and Section 5 generally.

5.2. Development of the APLUS Store

  • 5.2.1. Prior to the Commencement Date and at the direction of Franchisor, Franchisee, at Franchisee's expense, will obtain and install certain APLUS Store equipment designated by Franchisor (the "Store Equipment"). The Store Equipment must meet all of our specifications and requirements and must be purchased from suppliers approved or designated by Sunoco. You will adhere to all ongoing security, maintenance, and upgrade requirements of the Store Equipment as directed by Franchisor during the term of this Agreement. No Store Equipment owned by you or leased from a third party may be installed or used at the Store without our prior written consent.
    • 5.2.2.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

Based on the 2024 Aplus Franchise Disclosure Document, the document does not specify whether occupying the premises before Sunoco's official lease acceptance waives Sunoco's requirement for approval. However, the FDD does state that construction or conversion of the premises will be undertaken by Sunoco within a timeframe established by Sunoco, and Sunoco must obtain all necessary licenses, permits, variances, and other required governmental approvals necessary for such construction and conversion of the Premises.

Additionally, the Aplus franchise agreement states that the franchisee must identify and acquire a site for the Aplus store within thirty (30) days after the effective date of the agreement. The site must meet Aplus's then-current site selection criteria and must be mutually acceptable to both the franchisee and Aplus. Aplus will approve or reject the site within thirty (30) days of receiving the application and all required information. If an acceptable site is not found by the franchisee and approved by Aplus within ninety (90) days of the effective date, Aplus reserves the right to terminate the agreement.

Prospective franchisees should seek clarification from Aplus regarding the specific circumstances under which occupancy might be permitted before official lease acceptance and whether such occupancy would affect Sunoco's approval requirements. It is important to understand the potential risks and implications of occupying the premises without proper authorization, as it could potentially lead to termination of the franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.