What state's laws govern the Aplus Franchise Agreement, excluding conflicts related to the U.S. Trademark Act or other federal law?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Nothing in the Franchise Agreement or any related agreement is intended to disclaim the representations we made in the franchise disclosure document.
- b) Except to the extent this Agreement or any particular dispute is governed by the U.S.
Trademark Act of 1946 or other federal law, this Agreement shall be governed by and construed in accordance with the laws of the State of Texas (without reference to its conflict of laws principles).
References to a governmental agency also refer to any regulatory body that succeeds the function of such agency.
- c) Any action brought by either party, shall only be brought in the appropriate state or federal court located in or serving the judicial district in which Franchisor maintains its principal business address, currently Dallas County, Texas.
The parties waive all questions of personal jurisdiction or venue for the purposes of carrying out this provision.
Claims for injunctive relief may be brought by Company where Franchisee is located.
This exclusive choice of jurisdiction and venue provision shall not restrict the ability of the parties to confirm or enforce judgments in any appropriate jurisdiction.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the Franchise Agreement is governed by the laws of Texas, without regard to its conflict of laws principles, except when the U.S. Trademark Act of 1946 or other federal law applies to the agreement or a specific dispute. This means that in most situations, Texas law will be used to interpret and enforce the Aplus Franchise Agreement. However, federal law takes precedence in cases involving trademark issues or other matters of federal law.
This provision is important for prospective Aplus franchisees because it establishes the legal framework within which the franchise relationship will operate. Franchisees should be aware that if a dispute arises, Texas law will generally apply, which may impact their rights and obligations. It is advisable for potential franchisees to familiarize themselves with Texas law or consult with an attorney to understand how it may affect their franchise agreement.
Furthermore, any legal action brought by either Aplus or the franchisee must be initiated in the appropriate state or federal court located in or serving the judicial district where Aplus maintains its principal business address, which is currently Dallas County, Texas. Both parties waive any objections to personal jurisdiction or venue for the purpose of carrying out this provision. However, Aplus can bring claims for injunctive relief where the franchisee is located, and the parties retain the right to confirm or enforce judgments in any appropriate jurisdiction.