Does the Aplus Franchise Agreement establish a fiduciary relationship between the Franchisor and Franchisee?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement does not establish a fiduciary relationship between the parties. Unless otherwise specifically provided in this Agreement with respect to certain issues, whenever this Agreement requires Franchisee to obtain Franchisor's written consent or permits Franchisee to take any action or refrain from taking any action, Franchisor is free to act in its own self-interest without any obligation to act reasonably, to consider the impact on Franchisee or to act subject to any other standard of care limiting Franchisor's right, except as may be provided by statute or regulation.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, the franchise agreement does not establish a fiduciary relationship between Aplus and its franchisees. This means that Aplus is not legally obligated to act in the franchisee's best interest.
Specifically, Aplus is allowed to act in its own self-interest, without needing to consider the impact on the franchisee. The only exception to this is if a statute or regulation requires Aplus to act otherwise.
This is a common arrangement in franchising. Franchise agreements typically define a contractual relationship, but not a fiduciary one. Franchisees should be aware that Aplus's decisions may prioritize its own profitability and strategic goals, which may not always align with the franchisee's interests.