Under the Beard Papas Multi-Unit Development Agreement, what is the legal structure of Muginoho International, Inc., the Franchisor?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| Papa's | Multi-Unit Development Agreement between Muginoho International, Inc., a New York | corporation | |
|---|---|---|---|
| "Franchisor") and(the "Franchisee"). | with a principal place of business located at 11443 South Street Suite A-7, Cerritos, California 90703, (the |
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, Muginoho International, Inc., the franchisor, is a New York corporation. This information is relevant to prospective franchisees as it establishes the legal entity they are contracting with when entering into a Multi-Unit Development Agreement.
The fact that Beard Papas operates as a corporation has implications for liability and legal structure. As a corporation, Muginoho International, Inc. has a separate legal existence from its owners, which can provide some protection against personal liability for the company's debts and obligations. This is a common structure for franchisors, as it helps to manage risk and provides a clear framework for business operations.
Furthermore, the FDD includes amendments to the franchise and development agreements that address specific state laws, such as those in Maryland, Minnesota, Illinois, and New York. These amendments ensure that the franchise agreements comply with local regulations and protect the rights of franchisees in those states. For example, the Maryland amendment clarifies that franchisees retain the right to file lawsuits under Maryland franchise law, despite any arbitration clauses in the agreement.