factual

Under what condition might Sunoco treat an Aplus franchisee as a tenant-at-will after the lease ends?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (D) Notwithstanding the foregoing, and without waiving any of Sunoco's rights to evict you and re-enter the Premises, which rights shall be continuing and remain in full force and effect from and after the end of this Lease, if you remain in possession of the Premises for whatever reason, other than by virtue of a separate agreement in writing signed by Sunoco, then Sunoco may elect to treat you as a tenant-at-will of 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 option to consider an Aplus franchisee as a tenant-at-will if the franchisee remains in possession of the premises after the lease term has ended. This is applicable if there isn't a separate written agreement signed by Sunoco that allows the franchisee to remain on the premises. This clause does not waive Sunoco's rights to evict the franchisee and re-enter the premises. These rights remain in effect after the lease ends.

Being classified as a tenant-at-will means the franchisee's continued occupancy is at the discretion of Sunoco, and the tenancy can be terminated with proper notice, typically 30 days. This situation differs from a standard lease where the tenant has a defined term and more predictable rights of occupancy. The tenant-at-will arrangement provides Sunoco with greater flexibility to regain possession of the property.

This provision protects Sunoco's interests by ensuring they can regain control of the premises if a franchisee holds over without a formal agreement. For a prospective Aplus franchisee, it's crucial to understand that remaining on the premises after the lease term without explicit written consent from Sunoco can lead to a precarious tenancy-at-will situation, potentially resulting in eviction with limited notice. Franchisees should, therefore, plan carefully for the end of their lease term and either vacate the premises or secure a written extension or new lease agreement from Sunoco to avoid this situation.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.