In the City Wide Non-Compete Agreement, what documents are the recitals, definitions, acknowledgements, and warranties stated in the Franchise Agreement incorporated by reference from?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. CITY WIDE and Franchisee understand and acknowledge that the recitals (stated in the Franchise Agreement and as captioned "WITNESSETH"), all definitions, all acknowledgments, and all warranties stated in the Franchise Agreement are incorporated herein by reference; and
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Non-Compete Agreement incorporates certain elements from the City Wide Franchise Agreement. Specifically, the recitals (as captioned "WITNESSETH" in the Franchise Agreement), all definitions, all acknowledgments, and all warranties stated within the Franchise Agreement are incorporated by reference into the Non-Compete Agreement.
This means that when interpreting the Non-Compete Agreement, franchisees must also consider the corresponding sections of the Franchise Agreement. For instance, definitions of key terms used in the Non-Compete Agreement will be the same as those defined in the Franchise Agreement, unless explicitly stated otherwise in the Non-Compete Agreement. This ensures consistency and avoids ambiguity in the interpretation of both agreements.
For a prospective City Wide franchisee, this highlights the importance of carefully reviewing and understanding the Franchise Agreement in its entirety, as its terms directly impact the interpretation and enforcement of the Non-Compete Agreement. Franchisees should pay close attention to the sections regarding definitions, acknowledgments, and warranties within the Franchise Agreement, as these will be directly applicable to their obligations and restrictions under the Non-Compete Agreement.