factual

What section of the Aplus Franchise Agreement outlines additional requirements for franchisee compliance related to transfers?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 18.2.1. Franchisee has complied with the requirements set forth in Section 19;
  • 18.2.2. All obligations owed to Franchisor, and all other outstanding obligations relating to the Franchised Business, are fully paid and satisfied, and Franchisee is otherwise in compliance with this Agreement;
  • 18.2.3. Franchisee (and any transferring owners, if Franchisee is a business entity) has executed a general release, in a form prescribed by Franchisor, of any and all claims against Franchisor, including its officers, directors, shareholders, managers, members, partners, owners, employees, and agents (in their corporate and individual capacities), including, without limitation, claims arising under federal, state or local laws, rules or ordinances, and any other matters incident to the termination of this Agreement or to the transfer of Franchisee's interest herein or to the transfer of Franchisee's ownership of all or any part of

the Franchise; provided, however, that if a general release is prohibited, Franchisee shall give the maximum release allowed by law;

  • 18.2.4.

The prospective transferee has satisfied Franchisor in that it meets Franchisor's management, business and financial standards, and otherwise possesses the character and capabilities, including business reputation and credit rating, as Franchisor may require to demonstrate ability to conduct the Franchised Business, in addition to Franchisor's then-current requirements for franchisees;

  • 18.2.5.

The transferee and, if Franchisor requires, all persons owning any interest in the transferee, have executed the form of Franchise Agreement then being offered to new franchisees, which may be substantially different from this Agreement, and may include a different Royalty Fee, Marketing Fee rates and other material provisions; the initial term of the Franchise Agreement shall be the initial term provided for in the then-current franchise agreement, and all renewal terms shall be governed by the then-current franchise agreement, and the territory shall be the same as the territory granted pursuant to this Agreement;

  • 18.2.6.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, Section 18.2 of the agreement details the requirements a franchisee must meet to transfer their franchise. This section specifies several conditions that must be satisfied before a transfer can occur.

These conditions include the franchisee's compliance with Section 19 of the agreement, full payment of all obligations to Aplus, and the execution of a general release of claims against Aplus. Additionally, the prospective transferee must meet Aplus's standards for management, business, and financial capabilities.

Furthermore, the transferee may be required to execute the then-current form of the Aplus Franchise Agreement, which could have different terms than the original agreement. Meeting these requirements ensures that any transfer aligns with Aplus's standards and protects its interests.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.