Under what condition can either party terminate the lease for an Aplus franchise if the premises are destroyed?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
(A) Sunoco agrees to deliver to you possession of the Premises at the time and date the Term of this Lease commences. You agree, however, that if Sunoco is unable to so deliver possession of the Premises, Sunoco shall not be liable for any damages caused thereby. In such event, you shall not be liable to Sunoco for Monthly Fees until such time as Sunoco delivers possession of the Premises to you and, at your option, you may terminate this Lease at any time before the tender of possession by Sunoco by giving written notice thereof to Sunoco. If you do not so terminate this Lease, the Term hereof shall not be extended by reason of such inability of Sunoco to deliver possession.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if Sunoco is unable to deliver possession of the premises to the franchisee at the time the lease term commences, Sunoco is not liable for any resulting damages. In this situation, the franchisee is not required to pay Monthly Fees until Sunoco provides possession. Furthermore, the franchisee has the option to terminate the lease by providing written notice to Sunoco at any point before Sunoco offers possession. If the franchisee chooses not to terminate the lease, the term of the lease will not be extended due to Sunoco's inability to deliver possession.
This clause protects the Aplus franchisee from incurring costs or being bound to a lease for a property they cannot access or use. The franchisee has the right to cancel the lease if Sunoco cannot deliver the premises as agreed, providing flexibility and limiting potential financial losses. However, if the franchisee decides to wait for Sunoco to deliver possession, they will not receive any extension of the lease term to compensate for the delay.
This type of provision is relatively standard in commercial leases, as it addresses the possibility of unforeseen delays in delivering the property. It is important for a prospective Aplus franchisee to understand these terms, as delays in obtaining possession of the premises can impact their ability to open and operate their franchise on schedule. Franchisees should carefully consider their options and potential financial implications if such a situation arises.