Under what circumstances are Aplus Franchisees NOT required to release and hold harmless the Indemnified Parties regarding claims related to the Information System?

According to Aplus's 2024 Franchise Disclosure Document, Aplus franchisees are not required to release and hold harmless the Indemnified Parties from claims, liability, damages, or causes of action arising from the installation, maintenance, or operation of the Information System and its billing and payment processing if such claims arise from the Indemnified Party's gross negligence or intentional acts.

This means that while franchisees generally bear the responsibility for issues related to the Information System, Aplus assumes liability for its own actions. If problems with the system stem from Aplus's gross negligence or intentional misconduct, the franchisee is not required to indemnify Aplus for resulting claims or damages.

This provision offers a degree of protection to franchisees, ensuring they are not held responsible for Aplus's own severe errors or deliberate actions related to the Information System. It is important for prospective franchisees to understand the scope of this exception and to document any instances where Aplus's actions may constitute gross negligence or intentional acts, as this could affect liability for system-related issues.