Are there any exceptions to the Aplus franchisee's obligation to pay taxes imposed upon Sunoco?

According to Aplus's 2024 Franchise Disclosure Document, generally, Sunoco is responsible for paying real and personal property taxes assessed on the premises and loaned equipment. However, there is an exception where the Aplus franchisee is responsible for any increase in taxes that are attributable to improvements, additions, or equipment that the franchisee makes or installs. This means that while Sunoco covers the base property taxes, the franchisee will have to pay for any tax increases resulting from their own investments in the property.

This allocation of tax responsibilities has important implications for a prospective Aplus franchisee. It means that if a franchisee decides to invest in upgrades or additional equipment for the Aplus store, they need to factor in the potential increase in property taxes as an additional cost. This could affect decisions about what improvements are financially viable.

It is important to note that this section does not modify the provisions in Section 2.13, which may contain additional information about tax responsibilities. A prospective franchisee should carefully review Section 2.13 to fully understand their obligations. Additionally, if the franchisee accepts funding for equipment and construction, they are responsible for filing the necessary tax returns and paying any property taxes associated with the equipment purchased under the Funding Agreement.