Does an Aplus franchisor's visit to a franchised business imply compliance with obligations under the agreement or law?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
this Agreement. Failure to operate at least the number of hours as described on Attachment 1, unless prohibited by law, will result in an administrative fee equal to an additional one percent (1%) of the monthly Royalty Fee per day until the Franchised Business is open the minimum number of hours.
13.5. Certifications
Franchisee is required to obtain licenses and certifications as Franchisor may specify, which Franchisee shall obtain within the time period specified by Franchisor.
13.6. Licenses and Permits
Franchisee shall secure and maintain in force all required operational and professional licenses, permits and certificates necessary for the operation of the Franchised Business, including all zoning and local permits necessary to operate the Franchised Business from the principal residence of Franchisee or its Designated Manager, and shall operate the Franchised Business in full compliance with all applicable laws, ordinances and regulations. Franchisor makes no representation to Franchisee with regard to any legal requirements that Franchisee must satisfy or comply with in connection with the operation of the Franchised Business. Franchisee shall be solely responsible for investigating and complying with all such laws, ordinances and regulations with regard to the operation of the Franchised Business.
13.7. Notification of Proceedings
Franchisee shall notify Franchisor in writing of the commencement of any action, suit or proceeding involving Franchisee or the Franchised Business, and of the issuance of any order, writ, injunction, judgment, award or decree which may affect the operation or financial condition of the Franchised Business not more than five (5) days after notice of such commencement or issuance. Franchisee shall deliver to Franchisor not more than five (5) days after Franchisee's receipt thereof, a copy of any inspection report, warning, certificate or rating by any governmental agency relating to any health or safety law, rule, or regulation that reflects Franchisee's failure to meet and maintain the highest applicable rating or Franchisee's noncompliance or less than full compliance with any applicable law, rule or regulation.
13.8.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
Based on the 2024 Aplus Franchise Disclosure Document, a visit from Aplus to a franchised business does not imply compliance with obligations under the agreement or law. The FDD states that the franchisee is responsible for operating the Franchised Business in full compliance with all applicable laws, ordinances, and regulations. Aplus makes no representation to the franchisee regarding any legal requirements that the franchisee must satisfy. The franchisee is solely responsible for investigating and complying with all such laws, ordinances, and regulations regarding the operation of the Franchised Business.
Furthermore, the FDD emphasizes that the franchisee must comply with all applicable federal, state, and local laws, rules, regulations, ordinances, and orders. These laws and regulations vary from jurisdiction to jurisdiction and may change over time. It is the franchisee's sole responsibility to stay informed about and adhere to these legal requirements throughout the term of the agreement. Failure to comply with these laws constitutes a material breach of the agreement, potentially leading to immediate termination without an opportunity to cure the breach.
In addition, the franchisee is responsible for ensuring that their computer systems comply with all applicable laws, regulations, and commonly accepted industry standards, including those related to privacy, data security, and the processing and protection of confidential personal information, such as the Payment Card Industry Data Security Standards. Therefore, Aplus franchisees must proactively ensure their operations meet all legal and regulatory requirements, independent of any visits or oversight from Aplus.