What is the time limit for bringing claims arising out of or relating to the Aplus agreement or relationship, regardless of when the violation was known?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
YOU MUST BRING ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE RELATIONSHIP BETWEEN US AND YOU WITHIN TWO (2) YEARS FROM THE DATE ON WHICH THE VIOLATION, ACT, OR CONDUCT GIVING RISE TO THE CLAIM OCCURS, REGARDLESS OF WHEN YOU KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THE CLAIM, OR YOUR CLAIM WILL BE BARRED UNLESS A JUDICIAL PROCEEDING, AS PERMITTED, IS COMMENCED IN THE APPROPRIATE FORUM WITHIN THIS TWO-YEAR PERIOD.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees have a limited time to bring claims against the franchisor. Specifically, any claim arising out of or relating to the franchise agreement or the relationship between the franchisee and Aplus must be brought within two years of the date the violation occurred. This limitation applies regardless of when the franchisee knew or should have known about the facts giving rise to the claim.
This means that if a franchisee believes Aplus has violated the agreement, they must commence a judicial proceeding in the appropriate forum within this two-year period to avoid the claim being barred. This limitation is significant because it shortens the typical statute of limitations for many types of legal claims, which can often be longer than two years. Franchisees need to be aware of this clause and act promptly if they believe they have a claim against Aplus.
Such limitations on claims are relatively common in franchise agreements. The purpose is to provide certainty and prevent stale claims, which can be difficult to defend due to lost evidence or fading memories. However, franchisees should carefully consider this provision and consult with an attorney to understand their rights and obligations. Missing the deadline could mean forfeiting the right to pursue a legitimate claim, regardless of its merits.