Under what conditions will the Aplus lease not terminate upon the franchisee's death or permanent disability?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Successor-In-Interest.
- (K) Notwithstanding the terms of Sections 2.20(A)(9) and 2.20(A)(10), this Lease shall not terminate upon your death or permanent disability, if you, before your death or permanent disability, deliver a successor-in-interest designation pursuant to Sunoco's procedures and on a form prescribed by Sunoco and, upon your death or permanent disability, the designated successor-in-interest assumes all of your duties and obligations under the Lease and the designated successor-in-interest meets Sunoco's then-current requirements.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the standard terms of the lease agreement include provisions that would typically cause the lease to terminate upon the franchisee's death or permanent disability. However, there are specific conditions under which the lease can continue without termination.
To avoid termination of the lease upon death or permanent disability, the franchisee must designate a successor-in-interest. This designation must be made before the franchisee's death or disability, following Aplus's procedures and using a form prescribed by Aplus.
Following the franchisee's death or permanent disability, the designated successor-in-interest must assume all of the franchisee's duties and obligations under the lease. Additionally, the successor-in-interest must meet Aplus's then-current requirements for franchisees. If these conditions are met, the lease will not terminate, allowing the business to continue operating under the designated successor.