Is Aplus restricted from owning, operating, or franchising other businesses under different trademarks that may be competitive with Aplus stores?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.2.3. Nothing in this Agreement prohibits or restricts Franchisor from (a) owning, acquiring, establishing, operating, or granting franchise rights for one or more other businesses under a different trademark or service mark (i.e., marks other than APLUS or SUNOCO), whether or not the business is the same as or competitive with Stores; or (b) owning, operating, or franchising one or more businesses offering products or services other than similar to those provided in the Franchise Agreement under the name APLUS, SUNOCO, or some derivative of the Marks.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus is not restricted from owning, operating, or franchising other businesses under different trademarks that may be competitive with Aplus stores. Specifically, Aplus retains the right to engage in other business ventures, even those that might compete with Aplus stores.
This means that a prospective Aplus franchisee should be aware that Aplus could potentially operate or franchise other businesses under different brand names that offer similar products or services. This could create competition for the franchisee's Aplus store. However, Aplus is not allowed to use the APLUS or SUNOCO trademarks for businesses offering products or services similar to those in the Franchise Agreement.
This clause protects Aplus's ability to diversify its business interests and explore new market opportunities. For a franchisee, it's crucial to understand that Aplus's focus is not exclusively on the Aplus franchise system, and they may need to compete with other ventures undertaken by Aplus. Franchisees should consider the potential impact of such competition on their business's profitability and market share.