Can Sunoco increase the Collateral Security Deposit for an Aplus franchise after the store opens?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco has the right to require a larger Collateral Security Deposit from a franchisee at any time during the contractual period. This is in Sunoco's sole discretion. The initial Collateral Security Deposit must be no less than $10,000 or another amount stated in Attachment 1, and is due prior to the opening of the Aplus store.

This means that even after an Aplus franchise store is open and operating, Sunoco can demand an increase to the Collateral Security Deposit. This could place a financial strain on the franchisee, especially if the demand comes unexpectedly or if the franchisee's business is facing financial difficulties.

However, the FDD also states that the amount of the Collateral Deposit may be changed, substituted, reduced, or increased at any time by mutual agreement between Sunoco and the franchisee. This implies that while Sunoco has the right to request an increase, the franchisee has the opportunity to negotiate the terms or potentially refuse the increase, although such refusal could have negative consequences for the franchise agreement. It is important for prospective franchisees to understand the conditions under which Sunoco might increase the deposit and to consider this potential financial burden when evaluating the Aplus franchise opportunity.