What is the required advance notice an Aplus franchisee must provide for ownership transfers within a business entity?

According to Aplus's 2024 Franchise Disclosure Document, if a franchisee is a business entity, the franchisee must provide Aplus with advance notice if the owners are transferring their ownership interests in the business entity among each other, or if they are transferring up to a non-controlling interest in the business entity to one or more third parties. The FDD does not specify the exact number of days or weeks of advance notice that Aplus requires.

In addition to providing advance notice for these types of transfers, the franchisee must also ensure that Attachment C to the agreement is amended to reflect the new ownership. Each new owner must sign a Guaranty and Personal Undertaking in the form of Attachment D, and each previous and/or new owner must sign a general release in favor of Aplus in the form Aplus requires. The franchisee must also pay Aplus a $2,500 administrative fee.

For all other transfers, including any sale or transfer of the franchisee's interest in the agreement and the sale of a controlling interest in the franchisee if the franchisee is a business entity, the franchisee must obtain Aplus's prior written consent. Aplus will not unreasonably withhold its consent to a transfer, but may condition its consent on satisfaction of certain conditions.