Under what circumstances is the Aplus Franchisor's liability limited for the actions of the Area Representative?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
(d) Franchisee and its controlling principals further acknowledge that Franchisor's liability for the actions of the Area Representative are limited to those actions performed by the Area Representative solely as a result of required obligations under this Agreement. Further, Franchisee agrees to seek damages solely from the Area Representative and to hold Franchisor harmless for any action, omission, error, either oral or in performance by the Area Representative which: (a) is contrary to law or public policy, or (b) is inconsistent with any Manual or other written direction or policy of Franchisor.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus limits its liability for actions of its Area Representatives under specific conditions. Aplus's liability is restricted to actions performed by the Area Representative as a result of obligations required by the Franchise Agreement. This means that if an Area Representative acts outside the scope of their required duties under the agreement, Aplus may not be held liable.
Furthermore, the franchisee agrees to seek damages solely from the Area Representative and to hold Aplus harmless for any action, omission, or error by the Area Representative if the action is contrary to law or public policy, or if it is inconsistent with any manual or other written direction or policy of Aplus. This provision protects Aplus from liability for actions by Area Representatives that deviate from established legal and company guidelines.
In practical terms, this means that if an Area Representative does something illegal or violates Aplus's policies, the franchisee's recourse is primarily against the Area Representative, not Aplus. This underscores the importance of understanding the scope of the Area Representative's authority and ensuring that their actions align with Aplus's standards and legal requirements. Franchisees should be aware of this limitation of liability and consider it when evaluating the risks associated with the franchise.