Under what conditions can a franchisee make alterations or changes to an Aplus store after construction or conversion?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
es not represent that the Plans will be sufficient to meet such local requirements. All such modifications and other changes not resulting from local requirements but requested by you must be approved in advance by Sunoco and are at your expense.
- 22.1.4. After receiving comments from you on the preliminary Plans, which the third party engineering vendor and/or Sunoco, in its discretion, may incorporate or note, shall prepare the final plans ("Final Plans") and submit them to you. The Final Plans shall include architectural and engineering plans consistent with the available information as furnished by you.
- 22.1.5. Within thirty (30) days after receipt of the Final Plans, you shall apply for all licenses, permits, variances and other governmental approvals ("Permits") necessary for such construction or conversion and you shall undertake construction or conversion at the earliest possible date. You shall construct or convert the Premises to an APLUS Store, as the case may be, in accordance with the Final Plans and shall not make alterations or changes to the Store except with the prior written consent of Sunoco during the term hereof.
22.2. Equipment and Construction Funding Agreement
If you accept funding for your Store for equipment and construction, you must also execute the Equipment and Construction Funding Agreement, attached hereto as Attachment 7 and incorporated herein ("Funding Agreement"). Sunoco agrees to use the Funded Amount (as defined in the Funding Agreement, to offset the cost of equipment and construction at the Store and to pay invoices on Franchisee's behalf to a third party. If any portion of the Funded Amount remains after payment of the subject construction and equipment is made, Sunoco will release remaining funds to the Franchisee via a credit to Franchisee's account with Sunoco. The amount of funding offered to you will depend on whether your APlus Store is a newly constructed store or conversion APlus Store.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, after the initial construction or conversion of the store, franchisees are generally prohibited from making alterations or changes without prior written consent from Sunoco, Aplus's franchisor. This requirement is in place to ensure that all Aplus stores maintain a consistent brand image and meet the franchisor's standards.
However, the FDD also indicates that Sunoco may, from time to time, determine that an Aplus store needs to be upgraded or remodeled due to experience, changes in the law, or changes in the marketplace. In such cases, franchisees are expected to conform to these changes and make all necessary expenditures to implement them. Sunoco reserves the right to increase the rent based on the scope of work performed and the capital invested in the Aplus store, providing prior written notice of any rent increases, and requiring the franchisee to execute an agreement consenting to the additional rent before construction begins.
Before construction or conversion, the franchisee may request modifications or changes to the preliminary plans. However, these modifications and changes, if not resulting from local requirements, must be approved in advance by Sunoco and are at the franchisee's expense. This process ensures that any franchisee-initiated changes align with the overall brand standards and operational requirements of Aplus. The franchisee is responsible for ensuring the store complies with local building codes and requirements, as Sunoco does not guarantee that the initial plans will meet all local regulations.