Can the terms of indebtedness be changed, including increasing or decreasing the interest rate, with the consent of the debtor under the Aplus franchise agreement?

According to Aplus's 2024 Franchise Disclosure Document, the terms of indebtedness can be changed, including increasing or decreasing the interest rate, with the consent of the debtor. Specifically, this ability to change the terms of indebtedness is in relation to the Guarantor under the Guaranty.

This means that Sunoco, as the franchisor, has the flexibility to modify the financial obligations, such as interest rates, associated with any debt owed by the franchisee (the debtor), provided the franchisee agrees to these changes. This clause protects Sunoco by allowing them to adapt the terms of the debt to changing economic conditions or the franchisee's financial situation, but it also requires the franchisee's consent, ensuring they are aware of and agree to the modified terms.

For a prospective Aplus franchisee, this implies that while Sunoco cannot unilaterally change the terms of their debt, they can propose changes, including adjustments to the interest rate. The franchisee has the right to refuse these changes, but doing so may have other implications depending on the overall agreement and relationship with Sunoco. It is important for franchisees to carefully consider any proposed changes to the terms of indebtedness and seek professional advice if needed to fully understand the potential impact on their business.