In the event of a legal action arising from the Aplus franchise agreement, is the prevailing party entitled to recover attorneys' fees and costs from the other party?

According to Aplus's 2024 Franchise Disclosure Document, if either party initiates a legal action against the other related to the Franchise Agreement, the prevailing party has the right to recover reasonable attorneys' fees and costs from the other party. This provision ensures that the party who wins a legal dispute is not burdened with the financial costs of litigation.

This clause is fairly standard in franchise agreements. It serves to discourage frivolous lawsuits and encourages both Aplus and its franchisees to resolve disputes amicably. However, it also means that a franchisee who loses a legal battle with Aplus could be responsible for covering Aplus's legal expenses in addition to their own.

It is important to note that this provision applies to legal actions arising out of or connected with the Franchise Agreement. Therefore, disputes outside the scope of the agreement may not be subject to this clause. Franchisees should carefully consider this clause and understand the potential financial implications before entering into a legal dispute with Aplus.