Under what circumstances, other than the anniversary date in Attachment 1, might the Aplus franchise agreement terminate early?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
en notice to you.
5.5. Air and Vacuum
You may participate in Sunoco's approved Air and Vacuum Program outlined in the Systems Manual. If you participate, you are required to have a minimum of one air tower, which meets Sunoco's specifications. Sunoco requires that each air tower be operational and accessible during all shifts. Sunoco reserves the right to include Air and Vacuum sales in the Gross Sales Calculation and charge Royalty Fees on such revenues.
5.6. Failure to Open
Franchisee must take possession of the APLUS Store and open by the Commencement Date. If Franchisee fails take possession of and open the APLUS Store for business on the Commencement Date, in addition to any other remedies herein provided, Sunoco, at its option, shall have the right to collect, as liquidated damages and not as a penalty, the prorated Minimum Royalty Fee per day for each calendar day you fail to open the APLUS Store for business. In addition, if you fail to take possession of and open the APLUS Store for business within thirty (30) days after the Commencement Date, Sunoco may terminate this Agreement. If this Agreement is terminated pursuant to this Section 5.6, Franchisor shall retain the entire Franchise Fee paid by Franchisee.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, there are several circumstances that could lead to the early termination of the franchise agreement. If a franchisee fails to take possession of and open the Aplus store for business by the commencement date, Aplus (Sunoco) has the right to collect a prorated Minimum Royalty Fee per day. Furthermore, if the franchisee fails to open the Aplus store within thirty days after the commencement date, Sunoco may terminate the agreement and retain the entire franchise fee.
Another cause for early termination arises if the franchisee wishes to relocate the franchised business. If Aplus and the franchisee cannot agree on a substitute site within ninety days after Aplus receives the franchisee's relocation notice, the agreement will terminate.
Additionally, Aplus retains the right to terminate the agreement if an acceptable site is not found by the franchisee and approved by Aplus within ninety days of the effective date of the agreement. Aplus also has the option to revoke or terminate the agreement if construction or conversion of the premises is deemed uneconomical in Sunoco's sole discretion.