Under what circumstances can Aplus immediately terminate the Franchise Agreement due to prohibited sales?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You are expressly prohibited from the display or sale of any adult/sophisticate magazines and/or materials at the APLUS Store. We also reserve the right to restrict you from the displaying or selling other items such as periodicals, videos, drug paraphernalia and other merchandise which may be offensive to the general public, or prohibited by applicable local laws or regulations. You are also expressly prohibited from selling synthetic marijuana (also known as Spice and K-2), drug paraphernalia and "bath salts". Bath salts may be known as Bliss Blue Light, Blue Silk, Charge, Cosmic Blast, Disco Concentrate Bath Salts, Ivory Snow, Ocean Burst, Pure Ivory, Purple Wave, Snow Leopard, Stardust, Tranquility Bath Salts, White Dove, White Knight, White Rush, Zeus 2, Ivory Wave, White Lightening or other names. Further, the sale of drug paraphernalia, such as glass smoking pipes are also prohibited. Sales of these products and any other prohibited product, as Franchisor may designate from time to time, can result in Franchisor's immediate termination of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus can immediately terminate the Franchise Agreement if a franchisee displays or sells prohibited items. These items include adult magazines and materials. Aplus also reserves the right to restrict the sale or display of other items that may be offensive to the general public or prohibited by local laws, such as periodicals, videos, and drug paraphernalia.
Specifically, Aplus prohibits the sale of synthetic marijuana (Spice and K-2), drug paraphernalia, and bath salts, which may be marketed under various names like Bliss Blue Light, Ivory Snow, or White Dove. The sale of drug paraphernalia, such as glass smoking pipes, is also forbidden.
For a prospective franchisee, this means strict adherence to Aplus's list of prohibited items is crucial. Selling any of these items, or any other product Aplus designates as prohibited, can lead to immediate termination of the franchise agreement. This policy underscores the importance of staying informed about Aplus's specific prohibitions and ensuring full compliance to avoid risking the franchise.