Under what conditions can Aplus suspend its performance of obligations under the Franchise Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition to any other remedies Sunoco may have, you hereby agree that if you fail to perform your obligations hereunder and fail to correct such default within five (5) days after receipt from Sunoco of notice thereof, Sunoco may perform or have performed your obligations as are necessary to correct such default. Any costs to Sunoco or payments by Sunoco incurred for such items and such costs shall be deemed additional charges pursuant to Section 2.05(D) above. These additional charges shall be due and payable within five (5) days from demand.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, if a franchisee fails to fulfill their obligations under the Aplus Franchise Agreement and does not rectify the situation within five days of receiving notice from Sunoco (the franchisor), Sunoco has the option to perform those obligations themselves or have them performed by a third party.
Any costs or payments incurred by Sunoco to correct the franchisee's default are considered additional charges. These additional charges are due and payable by the franchisee within five days of demand from Sunoco.
This clause ensures that Aplus can maintain brand standards and operational consistency even if a franchisee is underperforming or non-compliant. However, it also places a financial burden on the franchisee, who must reimburse Aplus for any expenses incurred in rectifying their defaults. Prospective franchisees should be aware of this provision and ensure they have sufficient financial resources to cover potential additional charges.