Does the Aplus FDD require disclosure if a party is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises, under the franchisor's principal trademark:
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus must disclose if any of the specified parties are subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department. The parties subject to this disclosure requirement include the franchisor, its predecessor, any person identified in Item 2, or an affiliate offering franchises under the Aplus principal trademark. This disclosure extends to actions affecting a license as a real estate broker or sales agent.
This requirement ensures that prospective franchisees are aware of any legal or regulatory issues that could affect the individuals or entities involved in the Aplus franchise system. The disclosure helps franchisees assess the stability and integrity of the franchise and its management.
Specifically, the disclosure encompasses any currently effective injunctive or restrictive order relating to the franchise, or under a Federal, State or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency. It also includes any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange.