On whom is the Core Group Restoration Franchising agreement binding?
Core_Group_Restoration_Franchising Franchise · 2025 FDDAnswer from 2025 FDD Document
CLEARING HOUSE PAYMENT AUTHORIZATION FORM | | ATTACHMENT E | CONFIDENTIALITY AGREEMENT |
FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT (this "Agreement") is made and entered into by CORE Group Restoration Franchising, LLC, a Texas limited liability company ("Franchisor," "CORE," "we," "us," or "our"), and the CORE Member identified on the signature block of this Agreement ("CORE Member," "you" or "your"), as of the date signed by us opposite our signature ("Effective Date"). If more than one person or entity is listed as the CORE Member, each such person or entity shall be jointly and severally liable for all rights, duties, restrictions and obligations under this Agreement.
1. PURPOSE
a. PURPOSE
- We have developed methods for existing businesses to convert to and become members of the CORE franchise system by using the Marks to operate businesses ("CORE Businesses" or "Businesses") that offer disaster recovery services, property damage restoration services and general construction services ("Services") to residential and commercial customers ("Customers"). CORE Businesses use the trade name and service mark "CORE" and other logos, trademarks, service marks and commercial symbols (collectively, the "Marks"). CORE Businesses also use our distinctive business format, adopt our code of conduct, and have access to business improvement methods, procedures, advertising, promotional and marketing methods, operational standards and specifications, and various other proprietary methods of doing business ("System Standards").
- We desire to grant you the right to convert your existing business to a CORE Business which operates using the Marks and pursuant to the System Standards.
- CORE Member desires to establish a CORE Business at a location and within a territory identified herein and we desire to grant the CORE Member the right to operate a CORE Business in the territory under the terms and conditions which are contained in this Agreement.
b. CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP
If CORE Member is a corporation, limited liability company, or general or limited partnership (collectively, an "Entity"), CORE Member agrees and represents as follows:
- CORE Member has the authority to execute, deliver and perform CORE Member's obligations under this Agreement and all related agreements;
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to Core Group Restoration Franchising's 2025 Franchise Disclosure Document, the Franchise Agreement is binding on Core Group Restoration Franchising, LLC, identified as the Franchisor, and the CORE Member, who is identified on the signature block of the agreement. If more than one person or entity is listed as the CORE Member, each is jointly and severally liable for all obligations under the agreement. This means that each individual or entity listed as a CORE Member shares equal responsibility for fulfilling the terms of the agreement.
Additionally, the Owners Agreement is binding on individuals who own a direct or indirect beneficial interest in the CORE Member, as well as their spouses. This agreement is a condition for Core Group Restoration Franchising to execute the Franchise Agreement with the CORE Member. The Owners Agreement ensures that the franchisor's interests are protected by involving those with a financial stake in the franchise.
Furthermore, in the event of a transfer of the franchise, a new franchisee may be involved, and the agreement would then also pertain to the former franchisee and the new franchisee. All parties must take actions to implement the terms and conditions of the agreement. This ensures a smooth transition and continued adherence to the franchise agreement's terms.