Is an Aplus franchisee permitted to participate in a class action suit against Indemnified Parties, APLUS, and/or SUNOCO?

According to Aplus's 2024 Franchise Disclosure Document, franchisees are prohibited from participating in a class action suit against Indemnified Parties, APLUS, and/or SUNOCO under any circumstances. This restriction is explicitly stated within the section detailing indemnification responsibilities.

This clause means that an Aplus franchisee gives up the right to join any class action lawsuit against Aplus, its parent company SUNOCO, or any of the Indemnified Parties. Indemnified Parties include Aplus's affiliates, subsidiaries, parents, and their respective officers, directors, managers, members, partners, shareholders, independent contractors, and employees. This waiver is a significant legal consideration for prospective franchisees.

Such a clause is not uncommon in franchise agreements. It is designed to protect the franchisor from large, consolidated legal actions. However, franchisees should carefully consider the implications of waiving their right to participate in a class action, as it may limit their ability to seek redress for grievances collectively with other franchisees.