Does the Aplus Development Agreement's requirement for litigation to be conducted in Texas limit a franchisee's right to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law?

According to Aplus's 2024 Franchise Disclosure Document, the requirement for litigation to be conducted in Texas does not limit a franchisee's right to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law. The FDD includes a state-specific addendum for Maryland that explicitly addresses this issue.

Specifically, the addendum states that while the Development Agreement requires litigation to occur in Texas, this requirement does not restrict a franchisee's right to file a lawsuit in Maryland if the claim arises under the Maryland Franchise Registration and Disclosure Law. This provision ensures that Aplus franchisees in Maryland retain their legal rights under Maryland law, regardless of the venue specified in the standard Development Agreement.

Furthermore, the FDD clarifies that any provisions in the Development Agreement requiring a franchisee to sign a general release of claims, including upon renewal, transfer, or any amendment, do not release any claims the franchisee may have under the Maryland Franchise Registration and Disclosure Law. Additionally, any claims arising under this law must be brought within three years after the grant of the franchise. These stipulations collectively protect the legal rights of Aplus franchisees in Maryland and ensure compliance with Maryland franchise law.