Where is the venue for all proceedings related to or arising out of the Aplus Franchise Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | No provision | There is no covenant by either party not to compete. |
| r. | Non-competition covenants after the franchise is terminated or expires | APLUS - 7 | In the event you or any owner is in default which has led to premature termination of the franchise agreement, you and any owner are prohibited from owning an interest in, investing in, managing, operating, or performing services, consulting with, or be employed by or for any competitive business located within 20 miles of your APLUS Store or any other APLUS Store, for two years after termination or expiration of the franchise agreement. Excepted from this restriction are any competitive businesses owned by you or an affiliate at the time of termination of the franchise agreement. |
| s. | Modification of the agreement | APLUS – 23.7 Premises - 2.27 | Except for those permitted to be made unilaterally by us under the APLUS Franchise Agreement or related agreements, the agreements may not be modified unless mutually agreed to in writing. |
| t. Integration/merger clause | APLUS – 23.7 Premises - 2.27 | Only the terms of the APLUS Franchise Agreement and related agreements are binding (subject to state law). Any representations or promises outside of the disclosure document and APLUS Franchise Agreement and related agreements may not be enforceable. Nothing in the APLUS Franchise Agreement and related agreements is intended to disclaim any representations we made in this disclosure document. | |
| u. | Dispute resolution by arbitration or mediation | No provision | None |
| v. | Choice of Forum | APLUS – 24.2 | Subject to applicable state law, the venue for all proceedings related to or arising out of the APLUS Franchise Agreement is Dallas, Texas. See the State Specific Addenda attached to this Disclosure Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–64)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the venue for all legal proceedings related to the Aplus Franchise Agreement is Dallas, Texas. This is subject to applicable state law, meaning that depending on the franchisee's location, state laws may override this clause. Franchisees should also refer to the State Specific Addenda attached to the Disclosure Document for any specific state law variations.
This "choice of forum" clause is a standard element in franchise agreements. It dictates where any legal disputes between the franchisee and Aplus will be heard. By specifying Dallas, Texas, Aplus ensures that all legal proceedings will occur in a location convenient for them, which could potentially increase costs for a franchisee who lives out of state and needs to travel for court.
Prospective franchisees should carefully review the State Specific Addenda to understand how their state's laws might affect this clause. They may also want to consult with a legal professional to fully understand the implications of this venue selection and how it could impact them in the event of a dispute with Aplus.