Are there any exceptions to the general release that an Aplus franchisee and each owner must execute, regarding claims against the franchisor, its affiliates, and their personnel?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.2.8. Franchisee and each Owner have executed a general release, in a form prescribed by Franchisor, of any and all claims against Franchisor, any Affiliate, and against their officers, directors, shareholders, managers, members, partners, owners, employees, and agents (in their corporate and individual capacities), except to the extent prohibited by the laws of the state where the Franchised Business is located.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a franchisee and each owner must execute a general release of claims against Aplus, its affiliates, and their personnel. However, this requirement has an exception. The release is not required to the extent that such a release is prohibited by the laws of the state where the franchised business is located.
This means that if the state where the Aplus franchise is located has laws that prevent or limit the use of general releases, those laws will take precedence. The franchisee will only be required to provide the maximum release allowed by law in such cases. This protects the franchisee from being forced to waive rights that are legally protected in their state.
For a prospective Aplus franchisee, this is an important consideration. They should consult with a legal professional in their state to understand the specific laws regarding general releases and how they might affect their franchise agreement. This will ensure they are not unknowingly waiving rights that are protected by state law.