factual

What signage requirements does Sunoco specify for Aplus franchisees to indicate proprietorship of the business?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

property taxes associated with the equipment, and (e) obtain insurance coverage for the equipment as required by the terms of your agreement. Tax issues may arise with respect to the Funding Agreement. Sunoco does not make any representation as to the proper tax treatment of the funding and you should consult your own tax advisor.

  • 22.4. Sunoco reserves the uninhibited right terminate this Agreement in the event you do not complete the required construction or conversion of the Premises to an APLUS Store per System standards. The Franchise Fee and any other fees paid to Sunoco to date are nonrefundable.
  • 22.5. As soon as reasonably practicable after you have completed construction or conversion, obtained a beer and wine license (if available) and satisfactorily completed Sunoco's APLUS Training Program, Sunoco shall install exterior signage up to Sunoco's specifications. Depending upon the size, type, and design of the building, Sunoco may charge you for the cost and installation of the APLUS signage and/or exterior graphics. If you are not the sole and exclusive owner of the Premises, as a condition to Sunoco performing its obligations set forth in the preceding sentence, you shall submit, in form satisfactory to Sunoco, a consent of all owners of the Premises to the modification of the Premises, and a waiver in recordable form, of all claims of the owner, and any party claiming through or under the owner, including any mortgagees, to any improvements installed by Sunoco on the Premises and consent to removal by Sunoco of such improvements upon termination of this APLUS franchise relationship.

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

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, Sunoco outlines specific requirements for signage to ensure the business is clearly identified as an Aplus store. After the franchisee completes construction or conversion, obtains the necessary beer and wine license (if applicable), and finishes the Aplus Training Program, Sunoco will install exterior signage according to its specifications. Depending on the building's size, type, and design, the franchisee may be charged for the cost and installation of the Aplus signage and/or exterior graphics.

If the franchisee does not own the premises outright, they must provide Sunoco with a consent form from all owners, allowing the modification of the premises and waiving any claims against improvements made by Sunoco. This waiver must be in recordable form and include consent for Sunoco to remove these improvements upon termination of the franchise agreement. Once Sunoco installs the exterior signage, provides initial paint, the exterior Aplus sign, sign pole, and interior graphics, it will issue a notice allowing the franchisee to open the store.

The franchisee is obligated to operate the franchised business in a way that it is clearly identified and advertised as an Aplus Store. This includes using the Aplus trademark and other marks that are part of the Aplus system on all signs, suppliers, business cards, uniforms, and advertisements. This ensures consistent branding and public recognition of the Aplus franchise.

Failure to comply with these signage and branding requirements could be a breach of the franchise agreement. Franchisees should ensure they understand and adhere to Sunoco's specifications for signage and branding to maintain the integrity of the Aplus brand and avoid potential penalties or termination of the agreement.

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.