factual

Under what conditions is the Aplus franchise license granted to the franchisee?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

vice marks APLUS and/or SUNOCO and certain other Marks, the distinguishing characteristics of the System include: uniform standards and procedures for efficient business operations; procedures and strategies for marketing, advertising and promotion; customer service and development techniques; other strategies and techniques; and Trade Secrets and other Confidential Information; and the Manual; and

WHEREAS, Franchisor grants to qualified persons and business entities the right to own and operate an authorized brand or brands Franchised Business using the System and the Marks, as indicated on the Summary Page; and

WHEREAS, Franchisee desires to operate a Franchised Business, as indicated on the Summary Page, has applied for the Franchise and such application has been approved by Franchisor in reliance upon all of the representations made herein and therein; and

WHEREAS, Franchisee understands and acknowledges the importance of Franchisor's high and uniform standards of quality, operations and service and the necessity of operating the Franchised Business in strict conformity with Franchisor's System.

NOW, THEREFORE, Franchisor and Franchisee, intending to be legally bound, agree as follows:

1. DEFINITIONS

Whenever used in this Agreement, the following words and terms have the following meanings:

  • "Affiliate" means any business entity that controls, is controlled by, or is under common control with Franchisor, including but not limited to Sunoco LLC, a Delaware limited liability company.
  • "Agreement" means this agreement entitled "Sunoco Retail LLC Franchise Agreement" and all instruments supplemental hereto or in attachment, amendment, or confirmation hereof.
  • "APLUS Store" or "APLUS Franchise" shall mean an APLUS Franchised Business.
  • "Approved Supplier(s)" has the meaning given to such term in Section 13.1.
  • "Approved Vendor Purchase Requirement" means we may implement a buying group in which your participation will be required. In connection with such buying group, you will be required and you agree to make up to 90% of your total inventory purchases and, separately, up to 90% of your cigarette purchases, both computed monthly at cost, from Approved Suppliers or Designated Specific Suppliers. No purchase will be credited toward your Approved Vendor Purchase Requirement unless the purchase is from an Approved Supplier or Designated Specific Supplier. The cost value used to calculate your percentage of

inventory purchases and cigarette purchases from Approved Suppliers or Designated Specific Suppliers will only include the cost reflected on vendor invoices, and will exclude any allowances, rebates and discounts not reflected on vendor invoices. To count toward your Approved Vendor Purchase Requirement, the products must be ordered and paid for through our recommended method for ordering and paying that vendor.

  • "Business Data" has the meaning given to such term in Section 6.8.
  • "Captive Market" means venues that service a captive market, including, but not limited to, turnpikes, thruways, toll roads, airports, travel plazas, arenas, convention centers, or military bases, or venues at which food and/or beverage service rights are contracted to a third party.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, the franchise license is granted to qualified persons and business entities who desire to operate a franchised business using Aplus's system and marks. The grant is contingent upon the franchisee's application being approved by Aplus, based on the representations made within the application. The franchisee must understand and acknowledge the importance of Aplus's standards for quality, operations, and service, and must strictly conform to Aplus's system.

The franchise license granted is a revocable, limited, and non-exclusive license to operate a franchised business using the Aplus system, and only the authorized brand or brands and associated marks specified on the Summary Page. The franchisee cannot sublicense the use of the system or marks to any other person or entity, nor can they grant any person or entity the right to perform any part of the franchisee's rights or obligations, except as permitted in Section 18 of the agreement.

The franchisee will not receive an exclusive or protected territory and may face competition from other franchisees, outlets owned by Aplus or its affiliates, or other channels of distribution or competitive brands controlled by Aplus. By commencing operations of their Aplus store, the franchisee acknowledges that Aplus has fulfilled all obligations required prior to the store's opening. Aplus also retains the right to assign its rights or delegate the performance of its obligations under the agreement to third-party designees, area representatives, or independent contractors without the franchisee's prior written consent.

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.