Under what conditions can Sunoco terminate the Aplus Agreement related to construction or conversion?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco, the franchisor, retains specific rights regarding the termination of the Aplus Agreement related to construction or conversion. Sunoco reserves the right to terminate the agreement if the franchisee does not complete the required construction or conversion of the premises to meet Aplus System standards. Additionally, Sunoco may revoke the agreement before the commencement date if certain conditions precedent are not met. These conditions include obtaining necessary governmental approvals for construction and conversion, securing acceptable contractor bids, and, if applicable, the franchisee obtaining a beer and wine license.

Furthermore, Sunoco has the right to terminate the Aplus agreement if circumstances arise before the commencement date that render the construction or conversion uneconomical, in Sunoco's sole discretion. This provision protects Sunoco from incurring losses due to unforeseen construction or conversion issues.

These termination rights highlight the importance of franchisees meeting construction and conversion obligations and securing necessary approvals and licenses. Prospective franchisees should carefully review these conditions and assess their ability to comply with them to avoid potential termination of the Aplus Agreement. It is also important to note that the franchise fee and any other fees paid to Sunoco to date are nonrefundable in the event of termination.