Risk Score
Pending analysis
Investment Range
$20,000 - $38,500
Franchise Fee
$5,000
Total US Locations
265
Business Summary
APLUS Area Representative operates a business focused on expanding the APLUS convenience store franchise system. APLUS Area Representative recruits, screens, and evaluates individuals interested in becoming APLUS franchisees, who will then operate full-line retail grocery convenience stores, which may or may not include a gas fueling station, within a specific territory. APLUS Area Representative also provides ongoing support and services to these APLUS Store franchisees.
Corporate History
Sunoco Retail LLC, a Pennsylvania limited liability company, was formed in December 2015. It operates under the trade names "SUNOCO RETAIL LLC," "APLUS," and "Sunoco." The company engages in two primary lines of business: offering APLUS convenience store franchises (which are detailed in a separate disclosure document) and offering Area Representative Businesses. Sunoco Retail LLC states that it has offered franchises for APLUS Stores since May 1993. Its parent company is Sunoco LP, a Delaware limited partnership formed in 2012, which itself has never offered franchises. Affiliates such as Sunmarks, LLC (formed in 1990) own and license the brand's marks, and Sunoco, LLC (formed in 2013) provides petroleum products. This specific FDD is for the Area Representative franchise program.
Financial Overview
Investment Range
$20,000 - $38,500
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$5,000
Equipment Costs (Low)
$2,500
Equipment Costs (High)
$7,000
Working Capital
$5,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Sunoco LP, the parent company guaranteeing the performance for Sunoco Retail LLC, appears to be in a strong financial position. The company has consistently generated positive cash flow from its operating activities, reporting $549 million in 2024 and $600 million in 2023. As of December 31, 2024, Sunoco LP had healthy working capital of $518 million ($2,465 million in current assets versus $1,947 million in current liabilities). The independent auditors have given an unqualified opinion on the consolidated financial statements, meaning they found no issues with the financial reporting and no concerns about the company's ability to continue operations. It's worth noting that Sunoco LP's total debt significantly increased to $7,486 million in 2024, largely due to the acquisition of NuStar Energy L.P. However, the company also reported a substantial increase in equity and maintained significant unused borrowing capacity under its $1.5 billion revolving credit facility, with $1.25 billion available at the end of 2024. Sunoco LP was also compliant with all its financial debt covenants.
Financing Details
Sunoco Retail LLC does not offer any direct or indirect financing to its Area Representatives. Additionally, Sunoco Retail LLC does not guarantee any notes, leases, or other financial obligations for its Area Representatives.
Performance Metrics
Total US Locations
265
Franchised Units
246
Corporate Units
19
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Sunoco Retail LLC has disclosed two litigation cases in its legal history. The first case, which is still ongoing, was filed in June 2020 by Sunoco Retail LLC and its affiliate against a franchisee, Greyhound Aramingo Petroleum Co., Inc., its owner, and its insurer, Penn National. This dispute stems from an accident at a Sunoco-branded gas station in 2014, with Sunoco Retail LLC alleging breach of contract and failure to indemnify by the franchisee and its owner, and bad faith by the insurer. Although Sunoco Retail LLC was awarded over $2.2 million against the franchisee, its claims against the insurer and the individual owner were dismissed. All parties have appealed these rulings, and the appeals are pending. The second case, which is now closed, was brought by a former franchisee, Kiran Park Newsstand Inc., for an unpaid security deposit. Sunoco Retail LLC resolved this matter by depositing the disputed funds with the court and was dismissed from the lawsuit in February 2018.
Bankruptcy History
APLUS has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Conditions
APLUS Area Representatives do not have a contractual right to renew their Area Representative Agreement. However, if Sunoco Retail LLC, in its sole discretion, permits a renewal, APLUS Area Representatives would need to give six months' notice, provide all requested information, meet current criteria, be in substantial compliance with all agreements, agree to a redefinition of their territory and a revised development schedule, pay a successor license fee, complete refresher training, correct any deficiencies, and sign a then-current Area Representative Agreement (which may be materially different) and a general release.
Training & Support Program
Franchisor Assistance
Before APLUS Area Representatives begin operating their business, Sunoco Retail LLC will mutually establish their designated territory and sales goals. Sunoco Retail LLC also provides APLUS Area Representatives with a standard Area Representative training program and access to its Area Representative Manual and APLUS Systems Manual. Furthermore, the franchisor provides copies of the APLUS Store Franchise Agreement, Franchise Disclosure Document, and related ancillary documents necessary to offer or sell APLUS Store franchises. Once in operation, Sunoco Retail LLC distributes applicable sales service and royalty commissions to APLUS Area Representatives. It offers ongoing counseling, information, and materials on advertising, promotional matters, training, and development procedures. This support is delivered through directives, system bulletins, meetings, seminars, telephone and on-site visits, and via the APLUS website or other online communications.
Initial Training Hours
197
Training Location
Sunoco Retail LLC headquarters in Pennsylvania, the Area Representative's franchised business location, or another designated location including virtual platforms. On-the-job training may occur at certified training locations.
Ongoing Support
After APLUS Area Representatives open their business, Sunoco Retail LLC provides ongoing counseling, information, and materials regarding advertising, promotional matters, training, and development procedures related to the APLUS System. This support is delivered through directives, system bulletins, meetings, seminars, telephone, and on-site visits. APLUS Area Representatives also have access to the APLUS website and the Sunoco portal for additional online communications and resources. Sunoco Retail LLC also requires APLUS Area Representatives and their principal owners to attend all Area Representative conferences, webinars, and other events as required, such as those focusing on fitness, marketing, and sales.
Franchise Requirements
Ideal Candidate Profile
APLUS Area Representative is looking for individuals or entities who are current Sunoco fuel distributors or multi-site dealers, already under a separate agreement with Sunoco, LLC. Ideal candidates should possess good character and adequate financial resources. If an individual, they must commit full-time effort to the Area Representative business. If a business entity, a designated Controlling Principal must be responsible for day-to-day management and must successfully complete all required training for Area Representatives and APLUS Store franchisees. The role primarily involves actively recruiting, screening, and evaluating potential APLUS store franchisees, as well as providing support services to existing franchisees within a designated territory.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
home-based
Owner Participation
full-time
Territory Type
non-exclusive
Territory Size Requirements
The Sunoco Retail LLC Area Representative's territory is specifically defined by the existing fuel distribution contracts that the Area Representative or their affiliate has with Sunoco, LLC and Sunoco Retail LLC. The territory is not based on a geographical radius or population count, but rather on the network of dealer's fueling stations they currently supply fuel to. Generally, each APLUS Store developed within this territory is assumed to have a designated area specific to that individual fueling station.
Staffing Notes
For the Sunoco Retail LLC Area Representative business, if the franchisee is an individual, they must dedicate their full-time effort and best efforts to the operation. If the franchisee is a business entity, they must designate one or more Controlling Principal(s) to be responsible for the day-to-day management, devoting their full time and best efforts to the business. The franchisee and any Controlling Principal must successfully complete all APLUS-required training for Area Representatives and the APLUS Store franchisee training. The Area Representative business must always be under the on-site supervision of the franchisee or a general manager who has completed the franchisor's training program. The franchisor does not provide assistance with hiring or training the Area Representative's employees; the Area Representative is solely responsible for their management and supervision.