After termination or expiration of the Aplus Franchise Agreement, under what condition might the franchisee be obligated to pay additional rent?

According to Aplus's 2024 Franchise Disclosure Document, a franchisee may be obligated to pay additional rent even after the termination or nonrenewal of the Aplus Franchise Agreement. This obligation arises if, by mutual agreement between the franchisee and Aplus, related agreements remain in effect after the termination or nonrenewal of the Aplus Franchise Agreement. In such cases, the franchisee's obligations under these agreements continue, potentially including the obligation to pay additional rent to Aplus. This situation typically applies when the franchisee leases the store premises from Aplus or an affiliate.

This provision means that even after a franchisee ceases to operate the Aplus store, they might still have financial responsibilities related to the property. This could occur if the lease agreement extends beyond the franchise agreement's term and both parties agree to keep it active. The franchisee needs to understand the terms of all related agreements, especially lease agreements, and how they interact with the franchise agreement's termination or nonrenewal.

For a prospective Aplus franchisee, this highlights the importance of carefully reviewing all agreements, not just the franchise agreement. Understanding the conditions under which obligations like rent payments continue after the franchise ends is crucial for financial planning. Franchisees should seek legal counsel to fully grasp these implications and negotiate terms that protect their interests in the event of termination or nonrenewal. It is also important to note that Aplus has the option to assume the lease, if applicable, and/or purchase certain Aplus Store assets.