Is Sunoco's acceptance of Holdover Rental from an Aplus franchisee considered a waiver of their right to evict the franchisee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If you remain in possession of the Premises beyond the Lease Term hereof for whatever reason, then Sunoco may elect to treat you as a tenant-at-will, with the further right to terminate such tenancy upon thirty (30) days' prior written notice to you. You shall be obligated to pay to Sunoco a Holdover Rental for such tenancy equal to one hundred fifty percent one hundred fifty percent (150%) of the Rent for each month or part thereof of such tenancy at will ("Holdover Rental"). The monthly Holdover Rental shall be calculated by using an average of the prior three (3) months total Rent due Sunoco multiplied by one hundred fifty percent (150%). Acceptance by Sunoco of Holdover Rental for any month shall not be construed as a waiver of Sunoco's rights to evict you at any time after the termination of this Lease. Nor shall such acceptance of Holdover Rental by Sunoco be treated or construed as an expressed or implied renewal or continuation of this Lease. No action by a representative of Sunoco, such as a promise or representation made orally or by correspondence, shall be treated or construed as an agreement to renew or continue this Lease, and you are not entitled to rely upon any such action, promise, or representation in that respect.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco's acceptance of Holdover Rental does not constitute a waiver of their right to evict the franchisee. Even if Sunoco accepts Holdover Rental payments, they retain the right to evict the franchisee at any time after the lease termination.
The FDD specifies that if a franchisee remains in possession of the premises after the lease term, Sunoco can treat them as a tenant-at-will. In this situation, the franchisee is obligated to pay Holdover Rental, which is equal to 150% of the regular rent. This Holdover Rental is calculated using an average of the prior three months' total rent.
The document explicitly states that accepting this Holdover Rental does not prevent Sunoco from pursuing eviction. Furthermore, no action by a Sunoco representative, whether oral or written, can be construed as an agreement to renew or continue the lease, and the franchisee is not entitled to rely on any such action. This protects Sunoco's rights and clarifies that continued payment does not imply a lease extension or waiver of eviction rights.