factual

Are Sunoco's remedies upon termination or expiration of the lease for an Aplus franchise cumulative, concurrent, and in addition to any other remedies Sunoco may have at law or in equity or pursuant to the lease?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (A) In addition to the rights of termination prescribed in Section 2.20, Sunoco shall have the following remedies. All such remedies are cumulative, concurrent, and in addition to any other remedies Sunoco may have at law or in equity or pursuant to this Lease. The election of any remedies by Sunoco shall not preclude Sunoco from pursuing any other remedies.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, Sunoco's remedies upon termination or expiration of the lease are cumulative, concurrent, and in addition to any other remedies Sunoco may have at law or in equity or pursuant to the lease. This means that Sunoco has multiple avenues for seeking compensation or compliance from the franchisee in the event of a lease termination or expiration.

This provision is highly significant for prospective Aplus franchisees as it provides Sunoco with broad powers to pursue various remedies simultaneously. For example, Sunoco could pursue legal action for breach of contract while also exercising its rights to repossess the premises. The franchisee cannot argue that Sunoco must choose only one remedy; they can pursue all available options concurrently.

The FDD also states that the election of any remedies by Sunoco shall not preclude Sunoco from pursuing any other remedies. This reinforces the cumulative nature of the remedies, ensuring that Sunoco's decision to pursue one course of action does not limit its ability to pursue others. This could potentially increase the financial and legal burden on the franchisee in the event of a dispute or termination.

In practical terms, this clause means that if an Aplus franchisee fails to meet their obligations under the lease, Sunoco has significant leverage to enforce compliance and recover any losses. Franchisees should be aware of this provision and understand the full scope of their obligations under the lease agreement to avoid potential conflicts and liabilities.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.