What legend must be placed on certificates representing equity interest in a Beyond Juicery Eatery franchise?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
Publicly-Held Entity – a corporation or other entity whose equity securities are (i) registered pursuant to applicable law; (ii) widely held by the public; and (iii) traded on a public securities exchange or over the counter pursuant to applicable law.
Representative – an individual, designated as described in Attachment 1 who (i) owns an equity interest in the Developer and (ii) is authorized to act on behalf of, and bind, Developer with respect to this Agreement.
Security – the capital stock of, partner's interest in, or other equity or voting interest in Developer including such interests issued or created subsequent to the date hereof.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
I am unable to provide information on the specific legend that must be placed on certificates representing equity interest in a Beyond Juicery Eatery franchise, according to the 2025 Franchise Disclosure Document. While the document defines "Publicly-Held Entity" and "Security" in the context of the franchise agreement, it does not specify the exact wording or legal disclaimers required on equity certificates.
For a prospective Beyond Juicery Eatery franchisee, this means they should directly ask the franchisor for a sample equity certificate or a detailed explanation of the required legend. This is crucial to ensure full compliance with securities laws and the franchise agreement.
Understanding the specific requirements for equity certificates is essential for anyone planning to offer equity in their Beyond Juicery Eatery franchise, as non-compliance could lead to legal and financial repercussions.