Does the Aplus franchise agreement require franchisees to acknowledge they have read and understand the agreement and its attachments?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ached as Attachment 2, upon execution of this Agreement or prior to each such person's affiliation with Franchisee. Upon Franchisor's request, Franchisee shall provide Franchisor with copies of all Non-Disclosure agreements signed pursuant to this Section 7.4. Such agreements shall remain on file at the offices of Franchisee and are subject to audit or review as otherwise set forth herein. Franchisor shall be a third party beneficiary with the right to enforce covenants contained in such agreements.
7.5. Reasonableness of Restrictions
Franchisee acknowledges that the restrictive covenants contained in this Section 7 are essential elements of this Agreement and that without their inclusion, Franchisor would not have entered into this Agreement. Franchisee acknowledges that each of the terms set forth herein, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Franchisor, the System, the Marks, Franchisor's goodwill, and Franchisor's franchise system; and Franchisee expressly waives any right to challenge these restrictions as being overly broad, unreasonable, overly burdensome or otherwise unenforceable. Franchisee affirms that it has other means of earning a living from its employment experience prior to becoming a franchisee.
8. TRAINING AND ASSISTANCE
8.1.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchise agreement includes clauses where the franchisee acknowledges certain aspects of the agreement. Specifically, the franchisee acknowledges the reasonableness and essential nature of restrictive covenants within the agreement. Aplus franchisees also acknowledge that the franchisor has fulfilled its obligations once the franchisee commences operations of their Aplus store.
This acknowledgment is significant because it reinforces the franchisee's understanding and acceptance of key terms, such as the restrictive covenants that limit their activities post-termination. By agreeing that these restrictions are reasonable, a franchisee may find it more difficult to challenge them in court later on. Similarly, acknowledging the fulfillment of the franchisor's obligations at the outset can prevent future disputes about pre-opening responsibilities.
Furthermore, the agreement states that the franchisee understands and acknowledges the importance of Aplus's high and uniform standards of quality, operations, and service, and the necessity of operating the Franchised Business in strict conformity with Franchisor's System. This highlights the importance of adhering to Aplus's operational standards and the Aplus system to maintain consistency and quality across all franchise locations. This acknowledgment reinforces the franchisee's commitment to upholding these standards and operating within the established framework of the Aplus franchise system.
Prospective franchisees should carefully review all sections of the franchise agreement and any attachments to fully understand their obligations and the franchisor's rights. It is advisable to seek legal counsel to ensure a complete understanding of the agreement before signing.