factual

Is an Aplus franchisee authorized to make any contract, agreement, warranty, or representation on behalf of the Franchisor?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

This Agreement is purely a contractual relationship between the parties and does not appoint or make Franchisee an agent, legal representative, joint venture, partner, employee, servant or independent contractor of Franchisor for any purpose whatsoever. Franchisee may not represent or imply to third parties that Franchisee is an agent of Franchisor, and Franchisee is in no way authorized to make any contract, agreement, warranty or representation on behalf of Franchisor, or to create any obligation, express or implied, on Franchisor's behalf. During the term of this Agreement, and any extension or renewal hereof, Franchisee shall hold itself out to the public only as a franchisee and an owner of the Franchised Business operating the Franchised Business pursuant to a franchise from Franchisor. Franchisee shall take such affirmative action as may be necessary to do so including, without limitation, exhibiting a notice of that fact in a conspicuous place on all forms, stationery or other written materials, the content of which Franchisor has the right to specify. Under no circumstances shall Franchisor be liable for any act, omission, contract, debt, nor any other obligation of Franchisee. Franchisor shall in no way be responsible for any injuries to persons or property resulting from the operation of the Franchised Business. Any third-party contractors and vendors retained by Franchisee to convert or construct the premises are independent contractors of Franchisee alone. Franchisee further acknowledges and agrees that Franchisee is solely responsible for all decisions relating to employees, agents, and independent contractors that Franchisee may hire to assist in the operation of Franchised Business. Franchisee agrees that any employee, agent, or independent contractor that Franchisee hires will be Franchisee's employee, agent, or independent contractor, and not Franchisor's employee, agent, or independent contractor. Franchisee also agrees that Franchisee is exclusively responsible for the terms and conditions of employment of Franchisee's employees, including recruiting, hiring, firing, training, compensation, work hours and schedules, work assignments, safety and security, discipline, and supervision. Franchisee agrees to manage the employment functions of Franchisee's Store in compliance with federal, state, and local employment laws.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, the franchise agreement establishes a purely contractual relationship and does not authorize the franchisee to act as an agent or representative of Aplus. The franchisee is explicitly prohibited from representing themselves as an agent of Aplus or making any contracts, agreements, warranties, or representations on Aplus's behalf. This means the franchisee cannot bind Aplus to any obligations, whether express or implied.

During the term of the agreement, the franchisee must present themselves to the public solely as a franchisee and owner of the business, operating under a franchise from Aplus. The franchisee is required to take affirmative steps to ensure this is clear, including displaying a notice of their franchisee status on all written materials, with Aplus having the right to specify the content of this notice.

Aplus is not liable for any actions, omissions, contracts, debts, or other obligations of the franchisee. Aplus is also not responsible for any injuries to persons or property resulting from the operation of the franchised business. Any contractors or vendors hired by the franchisee are considered independent contractors of the franchisee alone. The franchisee is solely responsible for all decisions related to their employees, agents, and independent contractors, including their terms and conditions of employment, and must comply with all applicable employment laws.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.