What is the relationship between the Franchise Agreement's effectiveness and the Franchisee's representations and warranties regarding the Pre-Existing Business for Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ing the restrictions which this Agreement places upon their right to transfer their respective interests in such entity as set forth in Section 22.
31. FURTHER REPRESENTATIONS AND WARRANTIES BY THE FRANCHISEE
Franchisee acknowledges and warrants that it has received a complete and final copy of this Agreement, our Disclosure Document and applicable exhibits, in a timely fashion as required; and that before signing this Agreement, Franchisee was given ample opportunity to review and examine our Disclosure Document and was furnished with copies of the documents. NO ORAL, WRITTEN OR VISUAL CLAIM OR STATEMENT THAT CONTRADICTS THE DISCLOSURE DOCUMENT WAS MADE.
FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE AND ALL OF ITS OWNERS, HAVE BEEN ADVISED TO HAVE THIS AGREEMENT AND ALL OTHER DOCUMENTS REVIEWED BY AN ATTORNEY AND THAT FRANCHISEE AND ITS OWNERS HAVE READ, UNDERSTOOD, HAD AN OPPORTUNITY TO DISCUSS AND AGREED TO EACH PROVISION OF THIS AGREEMENT. THE FRANCHISEE AND ITS OWNERS AGREE THAT THERE HAS BEEN NO PRESSURE OR COMPULSION BY FRANCHISOR OR ITS AGENTS TO SIGN THIS AGREEMENT.
**FRANCHISEE ACKNOWLEDGES AND AGREES THAT THE SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED TO BE UNDERTAKEN BY FRANCHISEE AND ITS OWNERS IS SPECULATIVE AND WILL BE DEPENDENT ON PERSONAL EFFORTS AND SUCCESS IS NOT GUARANTEED. FRANCHISEE AND ITS OWNERS ACKNOWLEDGE AND REPRESENT THAT IT HAS ENTERED INTO THIS AGREEMENT AND MADE AN INVESTMENT ONLY AFTER
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Burros Fries Franchise Disclosure Document, the franchisee's representations and warranties are crucial for the Franchise Agreement's validity. The franchisee acknowledges receiving the Franchise Agreement and Disclosure Document in a timely manner and warrants that no contradictory claims were made. This acknowledgement confirms the franchisee's understanding and agreement to the terms outlined in the documents.
The franchisee also acknowledges being advised to have the agreement reviewed by an attorney and confirms they have read, understood, and agreed to each provision without any pressure from Burros Fries. This statement reinforces that the franchisee entered the agreement willingly and with informed consent. The franchisee's acknowledgement that the success of the business is speculative and dependent on their efforts further emphasizes their understanding of the risks involved.
Furthermore, the franchisee represents that they have conducted an independent investigation of the Burros Fries opportunity, including reviewing the list of current and former franchisees. This representation confirms that the franchisee did not solely rely on the franchisor's claims but performed their own due diligence. These representations and warranties made by the franchisee are essential for the enforceability and effectiveness of the Franchise Agreement, as they demonstrate the franchisee's informed consent, understanding of the terms, and independent investigation of the franchise opportunity.