Where can I find the definition of 'Owners' for a Better Homes And Gardens Real Estate franchise?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3 Owners. The word "Owner(s)" means a sole proprietor or each Person who has a direct or indirect equity ownership interest in you (if you are an entity). Exhibit A accurately reflects ownership interests in Franchisee, including all Owners and their ownership shares. If any Owner is an entity, information about the Persons owning the entity appears in Exhibit A.
- 1.4 Guaranty. All Owners (and as applicable, their members, shareholders, partners and spouses) will sign the Guaranty of Payment and Performance attached as Exhibit B.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 FDD, the definition of "Owners" in the context of a Better Homes And Gardens Real Estate franchise can be found in Section 1.3 of the Real Estate Franchise Agreement. The FDD specifies that "Owner(s)" refers to a sole proprietor or any individual or entity with a direct or indirect equity ownership interest in the franchisee.
For prospective franchisees, this definition is important because it clarifies who is considered an owner for the purposes of the franchise agreement. This includes not only individuals directly owning the franchise but also those with indirect ownership through an entity.
Furthermore, Exhibit A of the Franchise Agreement must accurately reflect all ownership interests, including the shares held by each owner. If any owner is an entity, information about the individuals owning that entity must also be included in Exhibit A. All Owners are required to sign a Guaranty of Payment and Performance, as detailed in Exhibit B, ensuring their commitment to the financial and operational obligations of the franchise.