Under the Deka Lash Guaranty, what does the signature of an individual on behalf of an entity signify?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The Developer named on the following page agrees to abide by the terms of this Agreement. The signature of an individual or individuals as sole proprietors, joint tenants, or tenants in common constitutes their personal agreement to such terms. The signature of an individual or individuals on behalf of an entity constitutes the entity's agreement to such terms.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the signature of an individual on behalf of an entity signifies the entity's agreement to the terms outlined in the agreement. This applies to the Developer Agreement.
This means that if a franchisee is a corporation, LLC, or other legal entity, the person signing on behalf of that entity is binding the entity to the terms of the Deka Lash agreement. It ensures that the legal entity, not just the individual signing, is responsible for upholding the obligations and responsibilities detailed in the franchise agreement.
This is a standard practice in franchising, as franchisors typically want to ensure that the business itself is legally bound to the agreement, rather than relying solely on the individual who may be acting on its behalf. This provides Deka Lash with recourse against the business entity should any contractual issues arise.