Is Aplus responsible for the accuracy of its business records, and does Sunoco verify them?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ents, revenues, expenses, and any correspondence, notes, memoranda, audits, business records, or internal accounts within said third parties' possession, custody or control, and to continue to release such records to Franchisor on a monthly basis for the length of the unexpired term of this Agreement or until such time as Franchisor withdraws its request. Franchisee shall execute all documents necessary to facilitate the release of records referenced herein to Franchisor.
12.8. Franchisor's Accounting System
Sunoco may make available to you certain accounting systems. If you choose to participate, you must pay to Sunoco the fees charged by the third party software plus Sunoco's costs to provide them to you, which Sunoco's costs may not exceed one hundred dollars ($100) per month. However, you understand and agree as follows:
- (a) You are solely responsible for maintaining accurate business records and Sunoco does not verify their accuracy. In addition, the information provided or required under this system may or may not be consistent with financial information provided or required by Federal, State or local taxing authorities. In that regard, you need to consult with your accountant and/or tax advisor;
- (b) You are required to enter all sales, costs of sales, and business expenses into the backoffice system. Sunoco reserves the right, in its sole discretion, to change or modify the required accounting and bookkeeping procedures in the Manual; (c) Sunoco will have access to reports regarding merchandising sales, margin and sales mix data compiled on your APLUS Store; (d) Sunoco shall have the righ
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are solely responsible for maintaining accurate business records. Sunoco, the franchisor, does not verify the accuracy of these records. The FDD states that even if Sunoco makes accounting systems available to the franchisee, the franchisee remains responsible for the accuracy of the business records.
This means that as an Aplus franchisee, you must ensure your financial records are accurate and compliant with all applicable laws and regulations. Sunoco's accounting system, if used, is only a tool, and the ultimate responsibility for accuracy rests with you. It is important to consult with your own accountant and/or tax advisor to ensure compliance with federal, state, and local taxing authorities, as the information provided or required under Sunoco's system may not be consistent with financial information required by these authorities.
While Sunoco does not verify the accuracy of your records, they do have the right to access reports regarding merchandising sales, margin, and sales mix data compiled on your Aplus store. Sunoco also has the right to access all profit and loss statements, balance sheets, and supporting documentation directly from you or from the back office or accounting system. Additionally, you authorize Sunoco to obtain records pertaining to products and services provided to your Aplus store directly from your vendors and suppliers. Sunoco also has the right to audit your books and records to verify sums due and compliance with the lease agreement.
Therefore, while Sunoco does not actively verify the accuracy of your day-to-day record keeping, they maintain the right to inspect and audit your records for compliance purposes. It is crucial for prospective franchisees to understand their obligations regarding record-keeping and to establish robust accounting practices to ensure accuracy and compliance.