Does the Aplus franchise agreement prevent either the franchisor or franchisee from pursuing other legal remedies beyond those specified in the agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.3. Non-exclusivity of Remedy. No right or remedy conferred upon or reserved to Franchisor or you by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy in this Agreement or by law or equity provided or permitted, but each shall be cumulative of every other right or remedy.
- 14.4. WAIVER OF JURY TRIAL. FRANCHISOR AND YOU IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THEM AGAINST THE OTHER, WHETHER OR NOT THERE ARE OTHER PARTIES IN SUCH ACTION OR PROCEEDING.
- 14.5. WAIVER OF PUNITIVE DAMAGES. THE PARTIES HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM OF ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT IN THE EVENT OF A DISPUTE BETWEEN THEM EACH SHALL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED BY IT.
- 14.6. Time Limitation to Bring a Claim. You shall not assert any claim or cause of action against us, our officers, directors, shareholders, employees, or Affiliates after two years following the event giving rise to such claim or cause of action.
- 14.7. Attorneys' Fees. If either party commences a legal action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to have and recover from the other party its reasonable attorneys' fees and costs of suit.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, neither Aplus nor the franchisee is restricted to only the remedies outlined in the franchise agreement. The franchise agreement specifies that no right or remedy conferred upon or reserved to Aplus or the franchisee is intended to be exclusive of any other right or remedy provided by the agreement, law, or equity. Instead, each right or remedy is cumulative of every other right or remedy. This means that both parties can pursue any legal avenues available to them, in addition to those specifically mentioned in the agreement.
This non-exclusivity of remedies is a standard practice in franchising, ensuring that all legal options remain open to both parties in case of a dispute. However, the Aplus franchise agreement includes a waiver of punitive damages, meaning that the parties waive any right to claim punitive or exemplary damages against each other and agree to limit recovery to actual damages sustained.
Furthermore, the Aplus franchise agreement includes a time limitation to bring a claim. Franchisees cannot assert any claim or cause of action against Aplus, its officers, directors, shareholders, employees, or affiliates after two years following the event giving rise to such claim or cause of action. This clause could significantly impact a franchisee's ability to seek legal recourse if they discover an issue more than two years after it occurred. It is also specified that if either party commences a legal action against the other arising out of or in connection with the Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the other party.