When must a renewal certificate of insurance be furnished to Sunoco for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Prior to commencement of your APLUS Agreement, you shall provide to Sunoco a certificate of insurance coverage as required above, satisfactory to us. A renewal certificate of such policy shall be furnished to us prior to and no later than seven days before each policy renewal date. Each certificate shall include a provision that such policies may not be canceled or materially changed without prior written notice to us. You must keep the required insurance coverage in full force and effect during the term of the franchise. Failure to do so is a material breach of the APLUS Franchise Agreement and, if applicable, we may immediately suspend motor fuel delivers to your APLUS Store.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a franchisee must furnish a renewal certificate of insurance to Sunoco prior to, and no later than seven days before, each insurance policy renewal date. This requirement ensures that Aplus franchisees maintain continuous and adequate insurance coverage throughout the term of their franchise agreement.
The certificate of insurance must be satisfactory to Sunoco, and each certificate must include a provision stating that the policies cannot be canceled or materially changed without prior written notice to Sunoco. This protects Sunoco from potential liabilities and ensures they are informed of any changes to the franchisee's insurance coverage.
Failure to maintain the required insurance coverage constitutes a material breach of the Aplus Franchise Agreement. If a franchisee fails to provide the required insurance, Sunoco may immediately suspend motor fuel deliveries to the Aplus store. This highlights the importance of adhering to the insurance requirements to avoid disruptions to the business operations.
The FDD also mentions that Sunoco Retail LLC, its Subsidiaries & Affiliates must be included as an "Additional Insured" on all policies. This is a common practice in franchising, as it provides an additional layer of protection for the franchisor against potential claims related to the franchisee's operations.