Who is responsible for verifying that the inventory results for an Aplus franchise appear reasonable?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ice designated by us, within ninety (90) days following the Commencement Date, in accordance with our then-current standards. Thereafter, during the term of this Agreement you are required to cooperate with an annual physical inventory audit. If for any reason the inventory audit is cancelled or postponed by you without notice, as described in the Manual, you must reimburse us for the cost of the inventory audit. Sunoco shall make an inventory service available to perform the inventories. You agree and acknowledge that:
- 13.15.1.You are solely responsible for verifying that the inventory results appear reasonable.
- 13.15.2.While inventories are required as scheduled above, Sunoco recommends that you have the inventory performed as needed or on a quarterly basis as a management control.
- 13.15.3.Sunoco reserves the right to utilize their internal inventory service department to perform the annual physical inventory service upon thirty (30) days' notice.
- 13.15.4.In the event you dispute the results of any inventory taken by the inventory service selected by Sunoco, you may request that a second inventory be taken. If the results of the second inventory show that: (a) the first inventory was correct, you shall be responsible for the costs incurred in taking the second inventory; (b) the first inventory was incorrect by more than 2% from the second inventory for the APLUS Store or any section of the APLUS Store, Sunoco shall be responsible for payment of the cost incurred in taking the second inventory.
13.15.5.To assist Sunoco in providing merchandising recommendations to you and summaries of information for the benefit of all APLUS Franchisees, you shall provide to Sunoco such reports and data as are reasonably requested by Sunoco for such purposes and as are more fully described in the Systems Manual.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee is solely responsible for verifying that the inventory results appear reasonable. This means that the Aplus franchisee must take the necessary steps to ensure the accuracy and validity of the inventory data.
While Aplus requires scheduled inventories, Sunoco, Aplus's parent company, recommends that franchisees conduct inventories as needed or on a quarterly basis as a management control. Sunoco also retains the right to use its internal inventory service department to perform the annual physical inventory with 30 days' notice.
If a franchisee disputes the results of an inventory taken by Sunoco's selected inventory service, they can request a second inventory. If the second inventory confirms the first was correct, the franchisee bears the cost of the second inventory. However, if the first inventory is off by more than 2% from the second for the APLUS Store or any section of the APLUS Store, Sunoco will cover the cost of the second inventory.
Sunoco may also charge a $100 fee if the franchisee is late for a scheduled inventory review, if unorganized areas or excessive inventory impede the review, if there's an inability to access systems during the review, or if a second inventory confirms the first was correct. Franchisees must also provide reports and data to Sunoco to assist with merchandising recommendations and summaries for all Aplus franchisees.