In the Big Frog Custom T Shirts More agreement, who is considered the 'Franchisee'?
Big_Frog_Custom_T_Shirts_More Franchise · 2024 FDDAnswer from 2024 FDD Document
Big Frog Custom T-Shirts, Inc., d/b/a Big Frog Franchise Group (the Company), was formed to offer franchises to qualified professionals including, without limitation, entrepreneurs, business developers, and people looking to start their own opportunity (Franchisees) to operate their own franchised business (Big Frog Custom T-Shirts) and provide custom decorated t-shirts and apparel, and is incorporated in the state of Florida. The Franchise Agreement grants Franchisees the right to purchase printing equipment, forms, supplies, advertising materials, and merchandise from the Company and approved suppliers to sell custom printed products to their customers. Franchisees are licensed to use the Big Frog brand name, within a conditionally designated geographic territory for an initial term of ten years with renewal rights. The Company has Franchisees in the United States of America and Canada.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2024 FDD)
According to the 2024 Big Frog Custom T-Shirts More FDD, a 'Franchisee' is defined as a qualified professional, including entrepreneurs, business developers, and individuals seeking to start their own business, who are granted a franchise to operate a Big Frog Custom T-Shirts business. Franchisees are authorized to purchase printing equipment, supplies, advertising materials, and merchandise from Big Frog Custom T-Shirts More and approved suppliers to sell custom printed products. They are also licensed to use the Big Frog brand name within a designated geographic territory for an initial term of ten years, with renewal rights.
Furthermore, the Franchise Agreement outlines the relationship between the Franchisor (Big Frog Custom T-Shirts, Inc.) and the Franchisee, detailing the rights and responsibilities of each party. The Franchisee is granted the right to conduct internet-based advertising, maintain social media accounts, use software, and utilize telephone listings linked to the Big Frog Custom T-Shirts brand. The agreement emphasizes that Big Frog Custom T-Shirts More would not enter into the Franchise Agreement without the Franchisee's commitment to comply with all its terms and provisions.
The FDD also indicates that the term 'Franchisee' can refer to both an entity and its principals, especially in the context of a personal guaranty. This means that individuals who are principals of a franchisee entity may be required to personally guarantee the franchisee's obligations under the Franchise Agreement. This ensures that Big Frog Custom T-Shirts More has recourse to the personal assets of the principals if the franchisee entity fails to meet its financial or contractual obligations.