Under what circumstances is an Aplus franchisee solely responsible for repairing damage or rebuilding the Premises at their own expense?

According to Aplus's 2024 Franchise Disclosure Document, franchisees are generally responsible for any damage to Sunoco's Equipment and Premises, including damage caused by third parties. This means that if the Aplus premises or equipment is damaged, regardless of who caused the damage, the franchisee is responsible for the repair or replacement. The franchisee is obligated to repair or replace any damaged equipment, buildings, and fixtures at the premises. Sunoco retains the right to determine how best to handle the repair or replacement of damaged equipment or premises and can direct the franchisee on how to proceed. If the franchisee fails to comply with Sunoco's directions, Sunoco can repair or replace the damaged property to its standards, and the franchisee will be billed for the costs.

Additionally, the franchisee's responsibility for repairs extends to damages caused by their employees, customers, invitees, vandals, or any other parties. However, Sunoco's responsibility for repairs or replacements is limited to those resulting from normal wear and tear, not from the franchisee's negligence or failure to maintain the premises. The franchisee is also required to maintain a Preventive Maintenance (PM) contract with either Sunoco or a reputable contractor, ensuring the premises are well-maintained.

In practical terms, this means an Aplus franchisee must be prepared to cover the costs of repairing or replacing damaged property, even if the damage was not their fault. This could include damages from accidents, vandalism, or customer actions. Franchisees should ensure they have adequate insurance coverage to protect against these potential expenses. Furthermore, franchisees should diligently follow Sunoco's maintenance guidelines and directions for repairs to avoid additional costs and ensure compliance with the franchise agreement.