Under what conditions can Sunoco treat an Aplus franchisee as a tenant-at-will after the lease term?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (D) Notwithstanding the foregoing, and without waiving any of Sunoco's rights to evict you and re-enter the Premises, which rights shall be continuing and remain in full force and effect from and after the end of this Lease, if you remain in possession of the Premises for whatever reason, other than by virtue of a separate agreement in writing signed by Sunoco, then Sunoco may elect to treat you as a tenant-at-will of the Premises.
1.34 Waiver by You
You waive, to the extent permitted by applicable law, all notices or demands to quit possession prescribed by any law, statute, or ordinance relating to any summary process or other procedure for obtaining possession of the Premises.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco has the option to treat an Aplus franchisee as a tenant-at-will if the franchisee remains in possession of the premises after the lease term has ended. This is applicable if there isn't a separate written agreement signed by Sunoco that allows the franchisee to remain on the premises. This clause does not waive Sunoco's rights to evict the franchisee and re-enter the premises, and these rights remain in effect after the lease ends.
Being classified as a tenant-at-will means the franchisee's continued occupancy is subject to Sunoco's discretion, and the tenancy can be terminated by either party at any time, following any legally required notice. This situation differs from holding over under a renewed or extended lease, which would provide more security for the franchisee. The franchisee does not have the security of a long-term lease and can be asked to leave the premises with little notice.
This condition underscores the importance of either adhering to the lease term or securing a written agreement with Sunoco for continued occupancy to avoid the uncertainty of a tenancy-at-will. Franchisees should be aware of this clause and proactively manage their lease agreements to protect their business interests. It is also important to note that the franchisee waives any notices or demands to quit possession, to the extent permitted by law.