Under what conditions can the amount of the Aplus Collateral Security Deposit be changed?

According to Aplus's 2024 Franchise Disclosure Document, the amount of the Collateral Security Deposit can be changed, substituted, reduced, or increased at any time, but only if there is mutual agreement between Sunoco (the franchisor) and the franchisee. This means that any adjustment to the deposit requires both parties to consent to the change.

This condition provides some protection to the franchisee, as Aplus cannot unilaterally change the deposit amount. However, it also implies that Aplus can initiate negotiations to change the deposit amount at any time during the franchise agreement. A prospective franchisee should consider this when evaluating the financial obligations and potential risks associated with the franchise.

It is important for potential Aplus franchisees to carefully review and understand the terms of the franchise agreement regarding the Collateral Security Deposit, including the initial amount, the conditions under which it can be changed, and the circumstances under which Aplus can use the deposit to cover obligations or liabilities of the franchisee.