To what extent is each provision of the Maryland Amendment effective for an Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law applicable to the provisions are met independently of this Amendment. To the extent this Amendment shall be deemed to be inconsistent with any terms or conditions of said Development Agreement or exhibits or attachments thereto, the terms of this Amendment shall govern.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the effectiveness of each provision within the Maryland Amendment is contingent upon meeting the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law, independent of the Amendment itself. If any part of the Amendment is deemed inconsistent with the Franchise Agreement or its exhibits, the terms of the Amendment will take precedence.
Specifically, the Maryland Amendment addresses several key aspects of the franchise relationship. It ensures that any general release franchisees are required to sign upon renewal or transfer excludes claims arising under Maryland franchise law. It also stipulates that while the Franchise Agreement is generally governed by Texas law, Maryland law will prevail in cases of conflict, as required by Maryland franchise regulations. Furthermore, franchisees retain the right to bring lawsuits in Maryland under the Maryland Franchise Registration and Disclosure Law, regardless of any requirement for litigation to occur in Texas.
The amendment also clarifies that any section of the Development Agreement requiring a franchisee to waive liability as a condition of purchasing the franchise does not apply to liability incurred under Maryland Franchise Registration and Disclosure Law. Additionally, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Prospective Aplus franchisees in Maryland should understand that these amendments are designed to protect their rights under Maryland law. They should carefully review the Franchise Agreement and the Maryland Amendment to fully understand their rights and obligations. It is also important to consult with an attorney to ensure full comprehension of the legal implications.