Under what conditions might Sunoco nonrenew the relationship between Aplus and the franchisee if changes to the franchise relationship cannot be agreed upon?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco, the franchisor, has the right to nonrenew the franchise relationship under specific circumstances. One such condition arises if Aplus and Sunoco fail to agree on changes or additions to the franchise relationship. These changes or additions must be the result of a determination made by Sunoco in good faith and in the normal course of business, as defined in the Petroleum Marketing Practices Act (PMPA).

This provision means that Sunoco can decide not to renew the franchise agreement if it determines that changes are needed to the franchise relationship, and Aplus does not agree to those changes. This determination must be made in good faith and in the normal course of business, suggesting that Sunoco cannot arbitrarily impose changes simply to force non-renewal. The changes must be related to the franchise relationship as defined by the PMPA, which governs the relationship between fuel distributors and franchisees.

For a prospective Aplus franchisee, this clause highlights the importance of understanding the terms of the franchise agreement and the potential for changes during the franchise term. It also underscores the need for open communication and negotiation with Sunoco regarding any proposed changes. If disagreements arise, the franchisee should seek legal counsel to ensure that Sunoco's determinations are indeed made in good faith and in the normal course of business, as required by the PMPA.