Does the Confidentiality and Non-Compete Agreement for Burros Fries explicitly state that it is between Burros & Fries Franchise, Inc. and the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
DULE 6: CONFIDENTIALITY AND | | | | NON-COMPETE AGREEMENT 90 | |
FRANCHISE AGREEMENT
PARTIES
THIS FRANCHISE AGREEMENT ("Agreement") is made by and between Burros & Fries Franchise, Inc, a California corporation, hereinafter sometimes referred to as "Burros & Fries" or "Franchisor" and that party or parties described as the Franchisee in this Agreement and on the signature line, hereinafter known as "you" or "Franchisee." If the Franchisee is a corporation or limited liability company, partnership or other entity, certain provisions of this Agreement also apply to your shareholders, members, partners or owners. Any such entity may be referred to as an "Entity" and those who own the Entity may be referred to as "Owners." For ease of reference, Burros & Fries, Inc., will also be referred to as "we," "us" or "our" in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Franchise Agreement for Burros Fries is explicitly made between Burros & Fries Franchise, Inc., identified as the Franchisor, and the franchisee. The agreement refers to Burros & Fries Franchise, Inc. as "Burros & Fries" or "Franchisor" and the franchisee as "you" or "Franchisee." If the franchisee is a corporation, limited liability company, partnership, or other entity, certain provisions of the agreement also apply to the shareholders, members, partners, or owners of that entity. Burros & Fries, Inc., is also referred to as "we," "us" or "our" in the agreement. The document specifies that the parties are entering into the agreement to formalize their understanding.
This explicit naming of parties is a standard practice in franchising to clearly define the legal relationship and obligations of each party. It ensures that both Burros Fries as the franchisor and the franchisee are legally bound by the terms and conditions outlined in the agreement. This clarity is crucial for enforcing the agreement and resolving any disputes that may arise during the franchise term.
Furthermore, the document includes a schedule for an Individual Guaranty, which is used when the franchisee is a corporate entity, partnership, or other entity. This guaranty is made between Burros & Fries Franchise, Inc. and the franchisee, where the undersigned agree to personally and unconditionally guarantee the performance of the franchisee under the Franchise Agreement. This ensures that individuals associated with the franchisee entity are also bound by the agreement's terms, adding an extra layer of security for Burros Fries.