Under what conditions can the Aplus franchise agreement be amended, changed, or varied?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
(B) You understand and agree that from time to time, as a result of experience, changes in the law, or changes in the marketplace, Sunoco may determine that your APlus Store needs to be upgraded or remodeled. You agree to conform to such changes that Sunoco in its sole discretion has determined are reasonable, and make all expenditures necessary to implement such changes. Based upon the scope of the work performed and the amount of capital invested in the APlus Store, Sunoco reserves the right to increase your Rent. You will be provided with prior written notice of any increases to the Rent. You will be asked to execute an agreement consenting to the additional Rent to be paid before the commencement date of construction.
2.4. Premises
You may receive either a Leased APLUS Store or Non-Leased APLUS Store, as indicated on the Summary Page. Further the Leased APLUS Store or Non-Leased APLUS Store may be located in a Captive Market, for which you may be subject to additional fees. Terms of this Agreement are further amended by the respective terms in Attachment 1. You must only operate the approved APLUS Store from the approved location and no other business unless otherwise authorized pursuant to this Agreement or approved by us in writing.
13.20. Legal Compliance
In addition to complying with its obligations under this Agreement, you shall comply with all applicable federal, state, and local laws, rules, regulations, ordinances, and orders. Such laws, rules, regulations, ordinances, and orders vary from jurisdiction to jurisdiction and may be amended or implemented or interpreted in a different manner from time to time. It is your sole responsibility to apprise itself of the existence and requirements of all such laws, rules, regulations, ordinances, and orders and to adhere to them at all times during the term of this Agreement. Failure to comply with applicable federal, state, and local laws, rules, regulations, ordinances, and orders is a material breach of this Agreement and Franchisor reserves the right to terminate this Agreement immediately for cause and without an opportunity to cure.
Franchisee shall not relocate the Franchised Business without the prior written consent of Franchisor. If the parties do not agree upon a substitute site within ninety (90) days after Sunoco's receipt of your notice, this Agreement shall terminate as provided in Section 16.2.1. Any such relocation shall be at Franchisee's sole expense, and shall proceed in accordance with the Sunoco's then-current requirements and specifications. You agree to enter into a new APLUS Franchise Agreement for the balance of the term of this Agreement, however you will not be required to pay a new franchise fee.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, the franchise agreement can be amended under specific circumstances related to premises modifications and compliance with laws. Sunoco, Aplus's affiliate, may determine that an Aplus store needs upgrades or remodeling due to experience, changes in law, or marketplace shifts. In such cases, the franchisee agrees to conform to these changes and make necessary expenditures. Sunoco reserves the right to increase the rent based on the scope of work and capital invested, providing prior written notice and requiring the franchisee to execute an agreement consenting to the additional rent before construction begins.
Additionally, the terms of the Aplus Franchise Agreement are amended by the terms in Attachment 1. Franchisees must operate the Aplus store from the approved location and no other business unless authorized in writing by Aplus. Franchisees are also obligated to comply with all applicable federal, state, and local laws, rules, and regulations, which may be amended or interpreted differently over time. It is the franchisee's responsibility to stay informed of and adhere to these legal requirements throughout the agreement term. Failure to comply with these laws constitutes a material breach of the agreement, potentially leading to immediate termination without an opportunity to cure the breach.
In the event of a relocation, the franchisee must obtain prior written consent from Aplus. If a substitute site is not agreed upon within 90 days of notice, the agreement may terminate. If relocation is approved, the franchisee must enter into a new Aplus Franchise Agreement for the remaining term, though without paying a new franchise fee. These provisions ensure that Aplus can adapt the franchise system to changing conditions and maintain legal compliance, while also providing a framework for franchisees to make necessary adjustments to their businesses.