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

According to Aplus's 2024 Franchise Disclosure Document, the requirement for litigation to be conducted in Texas does not limit a franchisee's rights to bring suit in Maryland under the Maryland Franchise Registration and Disclosure Law. Specifically, the FDD states that even though Section 24.2 of the Franchise Agreement requires litigation to be conducted in Texas, this requirement will not limit any rights a franchisee has under the Maryland Franchise Registration and Disclosure Law to bring a lawsuit in Maryland. This ensures that Aplus franchisees in Maryland retain their legal rights under Maryland law, regardless of the venue specified in the franchise agreement.

This provision is included as an addendum specific to Maryland, acknowledging and complying with the state's franchise laws. It reflects a recognition that certain aspects of the standard franchise agreement might conflict with Maryland law, and it explicitly states that Maryland law will prevail in such cases. This addendum also addresses other potential conflicts, such as those related to general releases or waivers of liability, ensuring that franchisees do not inadvertently waive their rights under Maryland franchise law.

For a prospective Aplus franchisee in Maryland, this means that they can pursue legal claims related to their franchise within the state of Maryland, even if the standard franchise agreement specifies Texas as the venue for litigation. This is a significant protection, as it allows franchisees to resolve disputes under the laws and in the legal venues of their own state, which can be more convenient and cost-effective than litigating in Texas. Additionally, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.