Under what circumstances can Sunoco require an Aplus store to be upgraded or remodeled?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
(B) You understand and agree that from time to time, as a result of experience, changes in the law, or changes in the marketplace, Sunoco may determine that your APlus Store needs to be upgraded or remodeled. You agree to conform to such changes that Sunoco in its sole discretion has determined are reasonable, and make all expenditures necessary to implement such changes. Based upon the scope of the work performed and the amount of capital invested in the APlus Store, Sunoco reserves the right to increase your Rent. You will be provided with prior written notice of any increases to the Rent. You will be asked to execute an agreement consenting to the additional Rent to be paid before the commencement date of construction.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco may determine that an Aplus store needs to be upgraded or remodeled due to experience, changes in the law, or changes in the marketplace. The franchisee agrees to conform to changes that Sunoco determines are reasonable and to make all necessary expenditures to implement these changes.
Sunoco retains the right to increase the rent based on the scope of work performed and the capital invested in the Aplus store. However, the franchisee will receive prior written notice of any rent increases and will be asked to execute an agreement consenting to the additional rent before construction begins.
This clause in the franchise agreement allows Aplus to maintain brand standards and adapt to market conditions, but it also places a financial burden on the franchisee. The franchisee must be prepared to invest in upgrades and remodels as required by Sunoco, and these investments could lead to increased rent. It is important for a prospective franchisee to assess their financial capacity to handle potential upgrade costs and rent increases when considering an Aplus franchise.