What section of the Burros Fries Franchise Agreement designates the Franchisee's Principals referenced in Schedule 5?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
A. The following is a list of all managing partners, partners, members, managers, shareholders,other Owners, investors in Franchisee (including all investors who own or hold direct or indirect interest in Franchisee) as well as all Franchisee's Principals described in and designated pursuant to Section 19.B of the Franchise Agreement. A description of the nature of their interest is also provided below.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Schedule 5, which is the Statement of Ownership Interests and Principals, references Section 19.B of the Franchise Agreement for the designation of the Franchisee's Principals. This means that Section 19.B of the agreement contains the criteria or process by which the franchisee's principals are identified and defined.
Schedule 5 requires a list of all managing partners, members, managers, shareholders, other owners, and investors in the Franchisee, including those with direct or indirect interest. It also includes all Franchisee's Principals as described in Section 19.B of the Franchise Agreement. This schedule ensures that Burros Fries knows who the individuals are behind the franchise entity and their respective interests.
For a prospective Burros Fries franchisee, it's crucial to understand Section 19.B to accurately complete Schedule 5. This is because the schedule requires specific identification of individuals who qualify as 'Principals' under the agreement. Failing to properly identify and disclose these individuals could lead to issues with compliance or potential disputes with Burros Fries.