If there are discrepancies between the summary in this table and the actual Aplus franchise agreement, which document prevails?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | No provision | There is no covenant by either party not to compete. |
| r. | Non-competition covenants after the franchise is terminated or expires | APLUS - 7 | In the event you or any owner is in default which has led to premature termination of the franchise agreement, you and any owner are prohibited from owning an interest in, investing in, managing, operating, or performing services, consulting with, or be employed by or for any competitive business located within 20 miles of your APLUS Store or any other APLUS Store, for two years after termination or expiration of the franchise agreement. Excepted from this restriction are any competitive businesses owned by you or an affiliate at the time of termination of the franchise agreement. |
| s. | Modification of the agreement | APLUS – 23.7 Premises - 2.27 | Except for those permitted to be made unilaterally by us under the APLUS Franchise Agreement or related agreements, the agreements may not be modified unless mutually agreed to in writing. |
| t. Integration/merger clause | APLUS – 23.7 Premises - 2.27 | Only the terms of the APLUS Franchise Agreement and related agreements are binding (subject to state law). Any representations or promises outside of the disclosure document and APLUS Franchise Agreement and related agreements may not be enforceable. Nothing in the APLUS Franchise Agreement and related agreements is intended to disclaim any representations we made in this disclosure document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–64)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, only the terms of the Aplus Franchise Agreement and related agreements are binding, subject to state law. This is according to the integration/merger clause outlined in APLUS – 23.7 and Premises - 2.27. Any representations or promises made outside of the disclosure document, the Aplus Franchise Agreement, and related agreements may not be enforceable.
However, the FDD also states that nothing in the Aplus Franchise Agreement and related agreements is intended to disclaim any representations Aplus made in the disclosure document. This means that while the franchise agreement is the ultimate binding document, the representations made in the FDD still hold some weight and cannot be completely disregarded.
For a prospective franchisee, this means it is crucial to thoroughly review the Aplus Franchise Agreement and related documents, as these are the documents that will govern the relationship with Aplus. While the FDD provides important information, the actual agreement will dictate the specific terms and conditions. It is also important to note any discrepancies between the FDD and the franchise agreement and address them with Aplus before signing.