Does the requirement for Aplus litigation to be conducted in Texas limit a franchisee's right to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law?

According to Aplus's 2024 Franchise Disclosure Document, the requirement for litigation to be conducted in Texas does not limit a franchisee's right to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law. This protection is specifically outlined to ensure that franchisees are not restricted from exercising their rights under Maryland law. This provision is part of a broader effort to comply with the Maryland Franchise Registration and Disclosure Law, which aims to protect franchisees within the state.

Specifically, the FDD addresses potential conflicts between Texas law (which governs the franchise agreement) and Maryland law. In any conflict, Maryland law will prevail to the extent required by the Maryland Franchise Registration and Disclosure Law. This ensures that Maryland franchisees retain their legal rights and protections under state law, regardless of the franchise agreement's general choice of law.

Furthermore, the FDD clarifies that any section of the Franchise Agreement requiring a franchisee to waive liability as a condition of purchasing the franchise will not act as a waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Additionally, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. These stipulations collectively reinforce the franchisee's ability to seek legal recourse in Maryland within the specified timeframe, without being hindered by conflicting terms in the franchise agreement.