Under the Confidentiality and Non-Compete Agreement, what does 'You' refer to for Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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. The persons signing as Franchisee, Owners or Guarantors will also be referenced to herein individually as "you" or "yours" or collectively as "Franchisee."
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the term "you" in the Franchise Agreement refers to the 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. These entities may be referred to as an "Entity," and those who own the Entity may be referred to as "Owners."
For clarity, Burros & Fries, Inc., is also referred to as "we," "us," or "our" in the agreement. The persons signing as Franchisee, Owners, or Guarantors are individually referenced as "you" or "yours" or collectively as "Franchisee."
This definition is important because it clarifies who is bound by the terms of the Franchise Agreement, including the confidentiality and non-compete clauses. It ensures that not only the franchisee but also the individuals behind the franchisee entity are responsible for upholding the agreement's obligations. This is a common practice in franchising to prevent individuals from circumventing the agreement by operating through a corporate entity.