Under what conditions can the Aplus franchise agreement be terminated immediately without an opportunity to cure?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.2.
Termination with Notice and Without Opportunity to Cure.
Franchisor has the right to terminate this Agreement, which termination will become effective upon delivery of notice without opportunity to cure if: (a) you fail to meet the Development Schedule; (b) you or any Owner is convicted of, or pleads no contest to, a felony, a crime involving moral turpitude, or any other crime or offense that Franchisor believes is reasonably likely to have an adverse effect on the System; (c) there is any transfer or attempted transfer in violation of Article 8 of this Agreement; (d) you or any Owner fails to comply with the confidentiality or non-compete covenants in Article 6 and Article 10 of this Agreement; (e) you or any Owner has made any material misrepresentations in connection with your developer application; (f) Franchisor delivers to you two or more written notices of default pursuant to this Article 9 within any rolling 12-month period, whether or not the defaults described in such notices ultimately are cured; or and (g) violate the non-disparagement requirements pursuant to Section 5.3. above.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus can terminate the franchise agreement immediately, without giving an opportunity to cure, under specific circumstances. These include failing to meet the Development Schedule, which outlines the timeline for opening new Aplus stores.
Additionally, Aplus can immediately terminate the agreement if the franchisee or any owner is convicted of a felony, a crime involving moral turpitude, or any other crime that Aplus believes could negatively impact the Aplus system. Immediate termination is also possible if there is any unauthorized transfer or attempted transfer of the franchise, or if the franchisee or any owner fails to comply with confidentiality or non-compete agreements.
Furthermore, Aplus can terminate the agreement without an opportunity to cure if the franchisee or any owner makes material misrepresentations in their developer application. Aplus also reserves the right to immediate termination if they issue two or more written notices of default within a 12-month period, regardless of whether the defaults were ultimately corrected. Finally, violating the non-disparagement requirements outlined in Section 5.3 of the agreement can also lead to immediate termination.