Under what condition is an Aplus franchisee prohibited from removing or collateralizing the Loaned Equipment from the Premises?

According to Aplus's 2024 Franchise Disclosure Document, franchisees are prohibited from removing or using Loaned Equipment as collateral without obtaining prior written approval from the Lessor (Sunoco). This stipulation is part of the general provisions outlined in the Premises Lease agreement. The Loaned Equipment, which includes motor fuel equipment and Aplus store equipment, is provided to the franchisee for use in operating their Sunoco Aplus franchise.

This restriction ensures that Sunoco maintains control over its assets and the integrity of the Aplus franchise system. By requiring written consent before any Loaned Equipment is removed or used as collateral, Sunoco can prevent unauthorized alterations to the store setup or potential loss of equipment. This protects Sunoco's investment and ensures that all Aplus locations maintain a consistent brand image and operational standard.

For a prospective Aplus franchisee, this means they must seek permission from Sunoco before making any changes to the Loaned Equipment or using it for financial purposes. Failure to comply with this requirement could result in a breach of the lease agreement and potential penalties. It is important for franchisees to maintain open communication with Sunoco regarding any equipment-related needs or concerns to avoid any misunderstandings or violations of the agreement.