Are the captions and section headings part of the Baya Bar franchise agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, the parties, in consideration of the promises, undertakings and commitments of each party to the other set forth herein, and intending to be legally bound hereby, mutually agree as follows:
1. RECITATIONS. The Recitations set out above form part of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the recitations outlined at the beginning of the Baya Bar franchise agreement are considered part of the agreement. Specifically, the document states that these recitations, which detail the franchisor's established unique acai shops, trademarks, confidential operations manual, distinctive décor, operational methods, and other elements of the Baya Bar system, form an integral component of the agreement.
This means that the understandings and acknowledgments made by both the franchisor and franchisee in these recitations are legally binding. For example, the franchisee's acknowledgment of the importance of Baya Bar's high standards of quality, service, and appearance, and the necessity of operating the franchised business in conformity with the franchisor's standards, becomes a part of their contractual obligations.
While the FDD specifies that the recitations form part of the agreement, it does not explicitly state whether other captions and section headings within the franchise agreement are also considered part of the agreement. A prospective franchisee should seek clarification from Baya Bar regarding the legal status of all captions and headings within the franchise agreement to fully understand their contractual obligations.