Under what condition can Sunoco treat the Aplus franchisee as a tenant-at-will after the lease ends?
Aplus Franchise · 2024 FDDAnswer 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 condition allows Sunoco to maintain control over the property and provides flexibility in deciding whether to extend the lease or pursue other options.
If Sunoco chooses to treat the franchisee as a tenant-at-will, it also retains the right to terminate the tenancy with a 30-day written notice to the franchisee. During this holdover period, the franchisee is obligated to pay a holdover rental fee, which is 150% of the regular rent. This holdover rental is calculated based on the average of the total rent due to Sunoco for the three months immediately preceding the lease's termination.
The FDD specifies that Sunoco's acceptance of the holdover rental does not waive its right to evict the franchisee at any time after the lease termination. Additionally, the acceptance of holdover rental should not be interpreted as an implied renewal or continuation of the original lease agreement. Any promises or representations made by Sunoco's representatives do not constitute an agreement to renew or continue the lease, and the franchisee is not entitled to rely on such statements.