Regarding litigation involving Aplus, where is it generally required to be conducted, and what exception exists for franchisees in Maryland?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
the laws of the State of Texas however, in the event of a conflict of laws to the extent required by the Maryland Franchise Registration and Disclosure Law, the laws of the State of Maryland shall prevail.
- Section 14.2 requires litigation to be conducted in the State of Texas; the requirement shall not limit any rights Franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring suit in the State of Maryland.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, litigation is generally required to be conducted in the State of Texas. However, there is an exception for franchisees in Maryland.
Specifically, the FDD states that the requirement to conduct litigation in Texas does not limit any rights a franchisee may have under the Maryland Franchise Registration and Disclosure Law to bring a lawsuit in the State of Maryland. This means that while Aplus generally prefers litigation to occur in Texas, franchisees in Maryland have the right to bring suit in their own state if the claim arises under Maryland's franchise laws.
This provision is further reinforced by the state-specific addendum for Maryland, which explicitly states, "You may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law." This ensures that Maryland franchisees are not forced to litigate in Texas for claims arising under Maryland law, providing them with a more accessible legal venue.