Under what conditions can Sunoco immediately terminate an Aplus franchisee's interest in the lease, premises, and loaned equipment?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco can immediately terminate a franchisee's interest in the lease, premises, and loaned equipment if the franchisee attempts to assign or sublet the lease, premises, or loaned equipment without Sunoco's prior written consent. This applies whether the assignment or subletting is done voluntarily or by operation of law.

This provision is significant for prospective Aplus franchisees because it strictly limits their ability to transfer their rights and obligations under the lease. Franchisees must obtain explicit written permission from Sunoco before assigning or subletting any part of their interest in the leased property or equipment. Failure to do so can result in immediate termination of the lease, which would have serious repercussions for the franchisee's business operations.

This type of clause is relatively standard in franchise agreements, as franchisors like Aplus typically want to maintain control over who operates at their locations to protect their brand and ensure consistent standards. Franchisees should carefully consider this restriction and factor it into their long-term business plans, especially if they anticipate needing to transfer or sublet the business at any point.