Is Sunoco liable to an Aplus franchisee for business interruption or loss of profits resulting from Sunoco's reasonable exercise of its rights under the lease?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco is not liable to an Aplus franchisee for interruption of business or loss of profits if Sunoco reasonably exercises its rights, options, and privileges under the lease agreement. This means that while Sunoco has the right to enter and inspect the premises, conduct audits, and even reconstruct or modernize the location, they are not responsible for covering any financial losses the franchisee incurs due to these activities, provided they are carried out in a reasonable manner.

This provision has significant implications for a prospective Aplus franchisee. It means that franchisees bear the risk of lost income during any period when Sunoco is exercising its rights under the lease, such as during renovations or inspections. While the lease stipulates that certain fees will abate if reconstruction or modernization renders the premises unusable, this only covers specific fees outlined in sections 1.03, 1.04, 2.05(A), 2.05(C), and 2.05(D) of the lease. Sunoco also reserves the right to charge additional Monthly Fees pursuant to Section 2.05(B) based on the scope of remodeling or reconstruction performed at the Premises. Franchisees should carefully consider this potential for lost income and increased fees when evaluating the financial viability of the franchise.

It is important for potential Aplus franchisees to understand the scope of Sunoco's rights under the lease and the potential impact on their business operations. Franchisees should inquire about the frequency and nature of inspections, the likelihood of future renovations, and the potential duration of any business interruptions. Understanding these factors will help franchisees to better assess the risks and rewards associated with investing in an Aplus franchise.