Under what circumstances are the Aplus franchisor and its affiliates NOT held harmless for claims related to the Information System?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree to release and hold us and our affiliates and our respective officers and directors, harmless from and against any and all claims, liability, damages or causes of action of any nature arising from or in connection with the installation, maintenance or operation of the Information System and its billing and payment processing, except to the extent arising from such party's gross negligence or intentional acts.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, AND TRAINING (FDD pages 40–47)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus franchisees agree to release and hold harmless Aplus, its affiliates, and their respective officers and directors from any claims, liability, damages, or causes of action related to the installation, maintenance, or operation of the Information System, including billing and payment processing.
However, this hold harmless agreement does not apply if the claims arise from the gross negligence or intentional acts of Aplus or its affiliates. This means that if Aplus or its affiliates are grossly negligent or intentionally cause harm in connection with the Information System, the franchisee retains the right to pursue claims against them.
In practical terms, this clause protects Aplus from liability for ordinary issues that may arise with the Information System. However, it does not shield them from responsibility if their actions are grossly negligent or intentional, providing a limited avenue for franchisees to seek recourse in such cases.