Under the Aplus Development Agreement, what is the statute of limitations for asserting a legal claim against the Franchisor under the Rhode Island Franchise Investment Act?

According to Aplus's 2024 Franchise Disclosure Document, the standard statute of limitations for asserting a legal claim against Aplus under the Rhode Island Franchise Investment Act is four years. This means a franchisee has four years from the date the cause of action arises to file a lawsuit.

However, there is an exception to this four-year statute of limitations. If Aplus offers a rescission offer that has been approved by the Rhode Island director of business registration, the statute of limitations is shortened to ninety days after the franchisee receives the rescission offer. A rescission offer is essentially an offer to undo the franchise agreement and return the franchisee to their original position, typically involving a refund of fees paid.

This amendment ensures that Aplus complies with the Rhode Island Franchise Investment Act, which aims to protect franchisees. The provision prevents Aplus from enforcing shorter limitations periods that might be present in the standard franchise agreement. Franchisees in Rhode Island should be aware of both the standard four-year limitation and the shorter 90-day limitation in the event of a rescission offer, as failing to meet these deadlines could result in the loss of their legal rights.