What right does Sunoco reserve regarding proposed transfers or assignments of the Aplus lease?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco reserves the right to refuse consent to any proposed transfer or assignment of the lease if it would result in a material increase in risk, burden, or chance of not obtaining performance for Sunoco. This means that Aplus, as the franchisor, has significant control over who can take over a franchisee's lease.

This provision protects Sunoco from potential issues that could arise from a transfer or assignment, such as dealing with a new tenant who may not be financially stable or who may not operate the Aplus business according to the brand's standards. It also allows Sunoco to maintain a consistent level of quality and performance across all of its franchise locations.

For a prospective Aplus franchisee, this means that selling or transferring the Aplus business and lease is not guaranteed. Sunoco has the power to reject a potential buyer if they deem the transfer too risky. This could limit the franchisee's ability to exit the business when they want to or need to, and it could also affect the resale value of the franchise. Therefore, it is important for a prospective franchisee to understand Sunoco's criteria for approving transfers and assignments and to factor this into their decision-making process.