What representation must an Aplus franchisee make regarding the money deposited for the Collateral Security Deposit?

According to Aplus's 2024 Franchise Disclosure Document, a franchisee must represent that all money deposited for the Collateral Security Deposit is free and clear of any third-party claims, assignments, trusts, or legal processes. This representation is a condition of depositing the funds with Sunoco.

This requirement ensures that Sunoco has a clear and uncontested claim to the security deposit in case the franchisee defaults on their obligations. It protects Sunoco from potential legal disputes over the funds.

For a prospective Aplus franchisee, this means ensuring that the funds used for the security deposit are not subject to any existing liens, claims, or legal encumbrances. Failure to meet this condition could result in a breach of the franchise agreement and potential loss of the franchise.