In the Gold Star franchise agreement, what is the purpose of the headings preceding the text, articles, and paragraphs?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.1 Terms; Headings. All terms and words used in this Agreement, regardless of the number and gender in which they are used, shall include singular or plural and any other gender as the context of this Agreement may require. Headings preceding the text, articles and paragraphs hereof have been inserted solely for convenience of reference and shall not be construed to affect the meaning, construction or effect of this Agreement. If this Agreement is signed by more than one person or entity as "FRANCHISEE", all obligations of such parties hereunder shall be joint and several.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the headings used throughout the franchise agreement serve a specific, limited purpose. These headings, which precede the text, articles, and paragraphs, are included solely for convenience of reference. This means they are intended to help the reader navigate the document more easily by providing a quick indication of the content that follows.
However, the franchise agreement explicitly states that these headings should not be used to interpret or affect the meaning, construction, or effect of the agreement itself. In other words, if there's any ambiguity or dispute about the interpretation of a particular clause, the headings should not be considered a definitive guide. The actual text of the agreement is what governs, not the summary provided by the headings.
This is a fairly standard legal practice. The detailed language within each section of the Gold Star franchise agreement is what legally binds both the franchisor and the franchisee. Prospective franchisees should therefore focus on understanding the specific wording of each provision, rather than relying on the headings as summaries of those provisions.