Does Sunoco LLC qualify as an 'Affiliate' under the Aplus Franchise Agreement?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco LLC is explicitly defined as an affiliate within the franchise agreement. The agreement specifies that an 'Affiliate' includes any business entity that controls, is controlled by, or is under common control with Aplus, and it specifically names Sunoco LLC as an example of such an affiliate. This definition is important for prospective franchisees to understand, as it clarifies the relationship between Aplus and Sunoco LLC.

This affiliation has several practical implications for Aplus franchisees. For instance, franchisees may be required to purchase equipment or supplies from suppliers approved or designated by Sunoco. Additionally, franchisees are expected to comply with safety rules and regulations set forth by Sunoco. The franchise agreement also states that Sunoco may furnish and install certain Aplus store equipment.

Furthermore, Aplus franchisees may enter into a lease agreement with Sunoco for the premises. Sunoco also has the right to increase rent for the Aplus store and franchisees are expected to conform to changes that Sunoco determines are reasonable. Understanding the affiliate relationship between Aplus and Sunoco LLC is crucial for franchisees to fully grasp their obligations and the potential influence of Sunoco LLC on their business operations.