Can the terms of the new Aplus Franchise Agreement for the transferee be different from the original agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not relocate the Franchised Business without the prior written consent of Franchisor. If the parties do not agree upon a substitute site within ninety (90) days after Sunoco's receipt of your notice, this Agreement shall terminate as provided in Section 16.2.1. Any such relocation shall be at Franchisee's sole expense, and shall proceed in accordance with the Sunoco's then-current requirements and specifications. You agree to enter into a new APLUS Franchise Agreement for the balance of the term of this Agreement, however you will not be required to pay a new franchise fee.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee wishes to relocate their Aplus store, they must obtain prior written consent from Aplus. If Aplus and the franchisee agree on a new site within 90 days of Aplus receiving the franchisee's notice, the relocation can proceed according to Aplus's current requirements. In this instance, the franchisee will be required to enter into a new Aplus Franchise Agreement for the balance of the original term.
However, the critical benefit for the franchisee is that they will not be required to pay a new franchise fee in this situation. This suggests that while a new agreement is required, it is specifically for the remaining term of the original agreement and does not entail the usual upfront costs associated with a new franchise.
This policy provides some flexibility for Aplus franchisees who may need to move their location, while also ensuring that Aplus maintains control over the relocation process and that the franchisee remains committed to the Aplus system under a current agreement. The fact that no new franchise fee is required is a significant advantage, reducing the financial burden of relocation.