Under what conditions is an Aplus franchisee responsible for repairing damage to the Premises or Loaned Equipment at their sole expense?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Loaned Store Equipment, or Premises, as stated herein. Franchisor reserves the right, following proper notification by you, to determine whether a need for repair or replacement of Store equipment, Loaned Store Equipment, or Premises exists. Notification by you to Franchisor of a need for repair, and assumption by Franchisor of responsibility for repair, shall not relieve you of any liability incurred to third parties, including your employees, customers, invitees and the general public, because of a state of disrepair.
You are responsible for any and all damage to the Loaned Store Equipment and the Premises, including that caused by third parties. You must repair or replace any Loaned Store Equipment, other
equipment, buildings, and fixtures at the Premises so damaged. Franchisor reserves the right to determine how best to repair or replace damaged Store equipment, Loaned Store Equipment, or Premises, and may require you to follow its directions as to proper repair and/or replacement. Should you fail to comply with Franchisor's directions, Franchisor or its agents may repair or replace damaged property to its standards, costs of which will be billed to and paid by you.
13.19 Customer Privacy
The parties acknowledge and agree that protection of customer privacy and credit card information is necessary to protect the goodwill of businesses operating under the Marks and System. Accordingly, you agree that you shall cause the Franchised Business to meet or exceed, at all times, all applicable security standards developed by the Payment Card Industry Data Security Standards ("PCI DSS") council or its successor and other regulations and industry standards applicable to the protection of customer privacy and credit card information, including but not limited to the Fair and Accurate Credit Transaction Act ("FACTA"), and all other data security requirements Franchisor may prescribe. You are solely responsible for educating yourself as to these regulations and standards and for achieving and maintaining applicable compliance certifications.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee is responsible for any and all damage to the Loaned Store Equipment and the Premises, including damage caused by third parties. This means an Aplus franchisee bears the financial burden of repairing or replacing any damaged Loaned Store Equipment, other equipment, buildings, and fixtures at the Premises.
Aplus retains the right to determine how best to repair or replace damaged Store equipment, Loaned Store Equipment, or Premises, and may require the franchisee to follow its directions for proper repair and/or replacement. If the franchisee fails to comply with Aplus's directions, Aplus or its agents may repair or replace the damaged property to its standards, and the costs will be billed to and paid by the franchisee.
Furthermore, the FDD states that Sunoco's (Aplus's parent company) responsibility for repairs or replacements is limited to repairs resulting from normal wear and tear and not from the franchisee's negligence or misuse. This reinforces that franchisees are generally responsible for damage beyond normal wear and tear, especially if it results from their actions or the actions of third parties. The franchisee is also required to submit a completed Damage Report to Sunoco in the event of any damage to Sunoco's Equipment or Premises, including details such as names of persons involved, date, time, names of witnesses, names of insurance companies, and nature and extent of damages.
While Sunoco will attempt to recover costs of repair or replacement from liable parties and may reimburse the franchisee for recovery costs, the franchisee retains primary responsibility for the damage. This arrangement places a significant financial responsibility on the Aplus franchisee to maintain the premises and equipment and to cover damages, regardless of the cause. Prospective franchisees should carefully consider these obligations and ensure they have adequate insurance coverage and financial resources to handle potential repair or replacement costs.