In any action between the franchisee and franchisor, does Aplus waive the right to a trial by jury?

According to Aplus's 2024 Franchise Disclosure Document, both the franchisee and Aplus irrevocably waive their rights to a trial by jury in any legal action brought by either party against the other. This waiver applies regardless of whether the action is based in law or equity. Additionally, both parties waive the right to seek or recover punitive damages in any such action.

This waiver of jury trial has significant implications for prospective Aplus franchisees. By agreeing to the franchise agreement, franchisees give up their right to have disputes decided by a jury of their peers. Instead, disputes will be resolved by a judge, who may be more familiar with complex business and legal issues. This could potentially benefit Aplus, which likely has more experience with litigation and a deeper understanding of the legal landscape.

Furthermore, the waiver of punitive damages limits the potential financial recovery for a franchisee in case of a successful claim against Aplus. Punitive damages are intended to punish the wrongdoer and deter similar conduct in the future, and their absence could reduce the incentive for Aplus to avoid misconduct. Franchisees should carefully consider these waivers and their potential impact before investing in an Aplus franchise.

It is common for franchise agreements to include clauses requiring alternative dispute resolution methods such as arbitration or mediation. Jury trial waivers are also not uncommon. Prospective franchisees should consult with an attorney to fully understand the implications of these and other legal provisions in the franchise agreement before signing.