Which article of the Aplus Development Agreement applies to disputes arising out of the Guaranty?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
I agree that the provisions contained in Article 14 of the Development Agreement will apply to any dispute arising out of or relating to this Guaranty.
If Franchisor brings any legal action to enforce its rights under this Guaranty, I will reimburse Franchisor its reasonable attorneys' fees and costs.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Article 14 of the Development Agreement applies to any dispute arising out of or relating to the Guaranty. The Guaranty is a personal undertaking by an owner guaranteeing the prompt and full payment of all amounts owed by the Developer under the Development Agreement.
This means that if there is a disagreement or legal issue related to the Guaranty, the provisions outlined in Article 14 of the Development Agreement will govern how the dispute is handled. This could include aspects such as dispute resolution methods, choice of law, or limitations on legal actions.
Furthermore, if Aplus brings any legal action to enforce its rights under the Guaranty, the guarantor will be responsible for reimbursing Aplus for its reasonable attorneys' fees and costs. This highlights the importance of understanding the obligations and potential liabilities associated with the Guaranty before signing it.