Is Aplus required to pay compensation to a franchisee for sales resulting from Aplus's solicitation of consumers?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The APLUS franchise is non-exclusive. You will not receive an exclusive territory or any type of protected territory. You may face competition from other franchisees, from outlets we own, or from other channels of distribution or competitive brands that we control, including an area representative that may sell APLUS store franchise opportunities. You must comply with our system standards regarding soliciting consumers to choose to patronize your APLUS Store. We are not restricted from soliciting consumers and we are not required to pay you compensation for any related sales.
We operate 19 company-owned APLUS Stores in the State of New Jersey. We are not restricted from operating company-owned APLUS Stores in close proximity to your APLUS Store, either under the APLUS trademark or other marks. Our training programs are available at our designated training facility for your staff and for our staff. In addition, with respect to motor fuel sales, our affiliate, Sunoco, operates or supplies retail outlets throughout its marketing area with Sunoco or various branded motor fuel which may or may not compete with you for motor fuel sales.
Source: Item 12 — TERRITORY (FDD page 47)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus franchisees will not be compensated for sales resulting from Aplus's own solicitation of consumers. The franchise agreement is non-exclusive, meaning franchisees do not receive an exclusive territory or any protected territory.
Aplus franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Aplus, including area representatives who may sell Aplus franchise opportunities. Franchisees must adhere to Aplus's system standards regarding soliciting consumers to patronize their specific Aplus store.
Aplus is not restricted from soliciting consumers and has no obligation to compensate franchisees for any sales that may result from Aplus's solicitation efforts. This means that Aplus can actively market and advertise its brand without having to share any resulting revenue with its franchisees, even if those consumers end up making purchases at a franchised location.
Aplus operates 19 company-owned stores in New Jersey and is not restricted from opening more company-owned stores, even if they are in close proximity to a franchised Aplus store. Additionally, Sunoco, an affiliate of Aplus, operates or supplies retail outlets with Sunoco-branded motor fuel, which may compete with franchisees for motor fuel sales.