What is the purpose of the 'Recitals' section in the Cinch I.T. Guaranty Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
RECITALS
-
- We and Our affiliates and/or predecessors have developed a system for establishing, operating and marketing an Information Technology (I.T.) support business providing business computer support, general I.T. support, and other technology related services under the trade name and/or trademark "CINCH I.T." and Franchisor is currently marketing and selling franchises under that name and/or mark;
-
- Through the expenditure of time, effort and money, We have acquired unique experience, special skills, techniques and knowledge, marks, concepts, and proprietary information and have created and developed a unique business system for providing Information Technology Support Services ("Franchisor's System" or "System"), which System includes standards, specifications, methods, procedures, techniques, know-how, management directives, identification schemes, and proprietary marks and information in connection with the operation of the CINCH I.T. business ("System Standards"), which System Standards may be further developed by Us;
-
- Our System is used in connection with the name CINCH I.T., CINCH I.T. design trademark, other trademarks, service marks, trade names and trade symbols, trade dress, signs, slogans, logos, designs, emblems, URLs, domain names, website addresses, email addresses, digital cellular addresses, wireless web addresses and the like ("e-marks") and copyrights (hereinafter referred to collectively as "Marks"), as We have adopted and designated, or may subsequent to the date of this Agreement acquire and/or develop and designate for use in connection with Our System ("Licensed Rights");
-
- We are the owner of the Licensed Rights, together with all the goodwill connected to and/or with such rights;
-
- All of the enumerated Licensed Rights are recognized by the public as distinctive and valuable, and You recognize the potential benefits to be derived from being associated with and licensed by Us and from utilizing the Licensed Rights as We make available to Our franchisees through and under franchise agreements;
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the 'Recitals' section in franchise agreements, including the Guaranty Agreement, serves to provide context and background for the agreement. Specifically, the recitals outline the history and development of the Cinch I.T. system, the unique experience and skills that Cinch I.T. has acquired, and the proprietary nature of their business system. This section also establishes Cinch I.T.'s ownership and rights to its licensed rights, such as trademarks and service marks, and emphasizes the value and public recognition of these rights.
The recitals section also states that the franchisee recognizes the potential benefits of being associated with Cinch I.T. and utilizing its licensed rights. By including these recitals, Cinch I.T. sets the stage for the agreement, clarifying the reasons and understandings upon which the agreement is based. This can be important for interpreting the specific terms and conditions of the agreement and for demonstrating the mutual understanding of the parties involved.
In essence, the 'Recitals' section acts as an introductory statement that explains the foundation and intent behind the Cinch I.T. franchise agreement. It highlights the value of the Cinch I.T. system, the importance of its licensed rights, and the mutual benefits that both Cinch I.T. and the franchisee expect to gain from the franchise relationship. This section is then formally incorporated into the agreement itself, reinforcing its significance.