Does having a claim against Aplus excuse a franchisee from complying with the covenants in Article 10?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You and each Owner expressly agree that the existence of any claims you may have against Franchisor, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Franchisor of the covenants in this Article 10. You agree to pay all costs and expenses (including reasonable attorneys' fees) incurred by Franchisor in connection with the enforcement of this Article 10.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the existence of any claims a franchisee may have against Aplus does not excuse the franchisee from complying with the covenants in Article 10 of the franchise agreement. The franchisee and any owner expressly agree that any claims against Aplus, regardless of origin, will not serve as a defense if Aplus seeks to enforce the covenants outlined in Article 10.
Furthermore, the franchisee is responsible for covering all costs and expenses, including reasonable attorney's fees, that Aplus incurs while enforcing Article 10. This means that even if a franchisee has a legitimate claim against Aplus, they must still adhere to the covenants in Article 10 and bear the financial burden of Aplus's enforcement efforts.
This provision highlights a significant power imbalance in favor of Aplus. It is crucial for prospective franchisees to fully understand their obligations under Article 10 and the potential financial risks associated with any disputes that may arise with Aplus. Franchisees should seek legal counsel to assess the implications of this clause and explore options for recourse in case of disagreements with Aplus.