Under what circumstances does Sunoco have the right to remove Loaned Aplus equipment after the termination of the Aplus Franchise Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (E) If you lease the Premises from Sunoco and the APlus Franchise Agreement ONLY is terminated but the Premises Lease and Motor Fuel Supply Agreements remain in effect, your obligations under these agreements shall continue and you shall remain obligated to pay to Sunoco as additional rent, and not as a penalty, a Store Facilities Rent.
Such Store Facilities Rent shall be equal to fourteen percent (14%) of your monthly Store Gross Sales calculated using an average of the total Gross Sales for the twelve (12) month period immediately preceding the termination of your APlus Franchise Agreement.
Termination or Expiration
(G) Upon termination or expiration of this Lease, you shall deliver the Premises and Loaned Equipment to Sunoco in the condition in which you are obligated to maintain them hereunder.
Should you discontinue operation of the APLUS Store for any reason before the Expiration Date, Sunoco shall have the unlimited right to enter and remove the Loaned Store Equipment from the Premises.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco has the right to remove Loaned Aplus equipment under specific circumstances related to the termination of the Aplus Franchise Agreement and the lease agreement. If the Aplus Franchise Agreement is terminated, but the Premises Lease and Motor Fuel Supply Agreements remain in effect, the franchisee's obligations under these agreements continue. However, Sunoco retains the right to remove the Loaned Aplus equipment even if the lease is still in effect.
Additionally, upon the termination or expiration of the lease, the franchisee is obligated to deliver the premises and Loaned Equipment to Sunoco in the condition in which they are obligated to maintain them under the lease agreement. This implies that the franchisee must ensure the equipment is in good condition when returning it to Sunoco.
If a franchisee discontinues operation of the Aplus store for any reason before the expiration date of the franchise agreement, Sunoco has the unlimited right to enter the premises and remove the Loaned Store Equipment. This provision underscores Sunoco's control over the equipment and its ability to reclaim it if the franchisee ceases to operate the store, regardless of the reason for discontinuation.