Under the Equipment and Construction Funding Agreement for Aplus, what does Sunoco agree to do with the Funded Amount?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If you accept funding for your Store for equipment and construction, you must also execute the Equipment and Construction Funding Agreement, attached hereto as Attachment 7 and incorporated herein ("Funding Agreement"). Sunoco agrees to use the Funded Amount (as defined in the Funding Agreement, to offset the cost of equipment and construction at the Store and to pay invoices on Franchisee's behalf to a third party. If any portion of the Funded Amount remains after payment of the subject construction and equipment is made, Sunoco will release remaining funds to the Franchisee via a credit to Franchisee's account with Sunoco. The amount of funding offered to you will depend on whether your APlus Store is a newly constructed store or conversion APlus Store. Sunoco has the sole right to determine the amount of the funding.
The Funded Amount shall be amortized monthly in equal installments beginning in the first year of the term of APLUS Agreement. If APLUS Agreement is terminated for any reason prior to the expiration of the term, Franchisee shall repay to Sunoco the unamortized Funded Amount. Sunoco shall maintain records indicating the total amount due and owing from Franchisee with respect hereto and shall, upon written request by Franchisee, provide Franchisee with copies of such records. Franchisee's obligation to repay
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee accepts funding for equipment and construction, Sunoco agrees to use the Funded Amount to offset the costs of equipment and construction at the store. Sunoco will also use the funds to pay invoices on the franchisee's behalf to a third party.
If any portion of the Funded Amount remains after the payment for construction and equipment, Sunoco will release the remaining funds to the franchisee. This will be done via a credit to the franchisee's account with Sunoco. The amount of funding offered depends on whether the Aplus store is newly constructed or a conversion store, with Sunoco having the sole right to determine the funding amount.
The Funded Amount is amortized monthly in equal installments starting in the first year of the APLUS Agreement. If the APLUS Agreement is terminated for any reason before the term expires, the franchisee must repay the unamortized Funded Amount to Sunoco. Sunoco will maintain records of the total amount owed by the franchisee and provide copies of these records upon written request.