Under what circumstances is an Aplus developer or owner allowed to make statements that might otherwise be considered disparaging towards the franchisor?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Subject to applicable law, You and any Owner agree that neither will make any oral or written statement to the public or any third party that is false, negative, critical, or disparaging, implied or expressed, or otherwise degrades the reputation of, or concerning Franchisor or any of Franchisor's respective Affiliatesand its respective owners, managers, board members, principals, officers,
members, agents, or employees. This Section 5.3. shall not be construed to prohibit any person from responding when required by law, subpoena, court order, or the like.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, both the developer and any owner are generally prohibited from making any public or third-party statements, whether written or oral, that are false, negative, critical, disparaging, or that degrade the reputation of Aplus or its affiliates, owners, managers, board members, principals, officers, members, agents, or employees. This broad restriction aims to protect the brand's image and goodwill.
However, there is a specific exception to this non-disparagement clause. The agreement clarifies that this clause should not be interpreted to prevent any individual from responding when legally obligated to do so. This includes situations where a response is required by law, subpoena, court order, or similar legal processes.
This exception acknowledges that there may be circumstances where providing information that could be seen as critical or negative is a legal necessity. It protects the developer or owner from being penalized for fulfilling their legal obligations, even if the statements made in compliance with those obligations might otherwise violate the non-disparagement clause. Therefore, an Aplus developer or owner can make statements that might be considered disparaging if compelled by law or legal process.