Does Sunoco have the right to reconstruct or modernize the Aplus premises?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
tractors, shall have full unrestricted rights of ingress and egress to the Premises at any time during normal business hours, for purposes of: (1) conducting inspections and maintenance of Premises and Loaned Equipment; (2) to engage in the audit, examination, and inventory of your merchandise, Motor Fuels, and accounting records, as provided herein; (3) to determine your compliance with this Lease; and (4) as otherwise necessary to exercise Sunoco's rights, options, and privileges under this Lease, including access for purposes of remedying any default or omission by you.
- (B) Sunoco is not liable to you for interruption of business or loss of profits resulting from Sunoco's exercise, in a reasonable manner, of its rights, options, and privileges under this Lease.
- (C) Sunoco also reserves the right to enter the Premises to reconstruct or modernize the Premises. This right includes the right to totally tear down and rebuild, change, or add physical structures or other improvements deemed necessary or desirable by Sunoco to facilitate modernization of the APlus facilities and Loaned Equipment on the Premises or to enter upon the Premises to change, alter or modify its service marks, trade dress, service names, and other similar indicia. If Sunoco elects to reconstruct or modernize the Premises, the fees prescribed in Sections 1.03, 1.04, 2.05(A), 2.05(C), and 2.05(D) shall abate to the extent such construction or modernization work renders the Premises not usable for their normal functions. If Sunoco reconstructs or modernizes the Premises, the Term of this Lease shall not be extended. Based upon the scope of the remodeling or reconstruction performed at the Premises, Sunoco reserves the right to charge additional Monthly Fees pursuant to Section 2.05(B). You will be provided prior written notice of the increase in monthly fees.
1.28 Sunoco's Right of Audit; Records and Reports
(A) Upon termination of the APlus Franchise Agreement between you and Sunoco, but where existing Premises Lease is in effect, Sunoco reserves the right to conduct an audit of records, reports, and Gross Sales.
- (B) In case of such an audit, you covenant and agree, upon request by Sunoco, to submit to Sunoco on forms supplied or approved by Sunoco itemized statements showing all information necessary for the determination of all sums due from you to Sunoco pursuant to this Lease.
- (C) On or before the last calendar day of January, April, July, and October, respectively, of each year the Lease is in effect, you shall deliver to Sunoco a statement certified as correct by you and prepared in accordance with accepted retail merchandising accounting practices showing the amount of Gross Sales during the calendar quarter immediately preceding the month in which such statement is due. All such statements shall be submitted on Sunoco's form entitled "Quarterly Gross Sales Verification Statement" and shall be acknowledged by your accountant at the place indicated thereon.
- (D) You agree to keep and maintain on the Premises true and correct Records reflecting the Gross Sales generated from the APlus Store on the Premises for not less than three (3) years from the date sales were made to which such Records relate, or the prior completed audit, including Register Records and Original Transaction Records as set forth below:
- (1) Register Records.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco does reserve the right to reconstruct or modernize the Aplus premises. This right includes the ability to completely tear down and rebuild, change, or add physical structures or other improvements that Sunoco deems necessary to modernize the Aplus facilities and loaned equipment. Sunoco can also enter the premises to change, alter, or modify its service marks, trade dress, service names, and other similar brand indicators.
If Sunoco chooses to reconstruct or modernize the premises, the fees outlined in Sections 1.03, 1.04, 2.05(A), 2.05(C), and 2.05(D) of the lease will be reduced to the extent that the construction or modernization work makes the premises unusable for their normal functions. However, the term of the lease will not be extended due to any reconstruction or modernization work. Sunoco also reserves the right to charge additional monthly fees under Section 2.05(B) based on the scope of the remodeling or reconstruction, and the franchisee will receive prior written notice of any increase in monthly fees.
Additionally, the franchisee is generally prohibited from making any alterations or changes to the premises without Sunoco's prior written consent. Sunoco also reserves the right to permit the installation of ATMs, related phone lines, and equipment on a portion of the premises, as determined solely by Sunoco. If a franchisee makes alterations or modifications without Sunoco's consent, they will be responsible for all costs associated with removing those unauthorized changes, including attorney's fees. These provisions ensure that Sunoco maintains control over the appearance and functionality of Aplus locations, while also outlining the financial responsibilities and potential fee adjustments for both parties during any reconstruction or modernization efforts.