Upon termination or expiration of the Aplus franchise agreement, what must the franchisee immediately cease doing?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as otherwise provided herein, upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall terminate and Franchisee shall:
- 17.1.1. Immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
- 17.1.2. Cease to use the Trade Secrets or other Confidential Information, the System and the Marks including, without limitation, all slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
- 17.1.3. Take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city or county authorities which contains the name APLUS or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
- 17.1.4. Pay all sums owing to Franchisor and any Affiliate, including amounts due under Section 17.2, below. In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs and expenses, including reasonable attorneys' fees, with respect to litigation, arbitration, appellate or bankruptcy proceedings, unpaid Royalty Fees, and any other amounts due to Franchisor or any Affiliate;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must immediately cease certain activities. Specifically, the franchisee must stop operating the franchised business and is prohibited from representing themselves to the public as a current or former Aplus franchisee. This means the franchisee can no longer conduct business under the Aplus brand or claim any affiliation with Aplus.
Additionally, the franchisee must discontinue using Aplus's trade secrets, confidential information, the Aplus system, and all Aplus marks. This includes refraining from using any slogans, symbols, logos, advertising materials, stationery, forms, or any other items associated with the Aplus marks. This prevents the franchisee from leveraging Aplus's intellectual property and brand recognition after the agreement ends.
Furthermore, the franchisee is obligated to take necessary actions to cancel or assign to Aplus any assumed name or equivalent registration filed with state, city, or county authorities that contain the name APLUS or any other Aplus mark. The franchisee must provide Aplus with satisfactory evidence of compliance within 30 days after the termination or expiration of the agreement. This ensures that the franchisee does not continue to operate under a name that could be confused with the Aplus brand. Finally, the franchisee is responsible for paying all outstanding sums owed to Aplus and its affiliates, including any damages, costs, and expenses, such as attorneys' fees, related to litigation or unpaid royalty fees.