In any claim brought by an Aplus franchisee, does the franchisee agree to bring such claim individually?

According to Aplus's 2024 Franchise Disclosure Document, a franchisee agrees to bring any claim individually and not as part of a class action, to the extent permitted by law. This means that if an Aplus franchisee has a dispute with Aplus, they must pursue the claim on their own, rather than joining with other franchisees in a class action lawsuit.

This class action waiver can have significant implications for prospective Aplus franchisees. It prevents franchisees from collectively challenging Aplus's practices, even if multiple franchisees have similar grievances. While individual lawsuits are still possible, they can be more expensive and time-consuming for the franchisee, as they must bear the full burden of legal costs and efforts.

Class action waivers are increasingly common in franchise agreements. They are generally favored by franchisors as they limit the potential for large-scale, costly litigation. However, franchisees should carefully consider the implications of such waivers, as they can reduce their leverage in disputes with the franchisor. Franchisees may want to consult with an attorney to fully understand their rights and options before signing the franchise agreement.

It is important to note the clause "to the extent permitted by law," which suggests that the enforceability of the class action waiver may depend on the specific jurisdiction and applicable laws. Some states may have laws that restrict or prohibit class action waivers in franchise agreements, so franchisees should be aware of the legal landscape in their state.