In the Gold Star franchise agreement, what is the purpose of the headings used in 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 in the franchise agreement are for convenience only and do not affect the interpretation of the agreement. Specifically, the headings preceding the text, articles, and paragraphs are inserted solely for reference purposes.
This means that when interpreting the Gold Star franchise agreement, a franchisee should not rely on the headings to understand the meaning, construction, or effect of the agreement. The actual text within each section is what governs the relationship and obligations of both the franchisee and Gold Star. Franchisees should carefully read and understand the content of each section, rather than relying on the headings as summaries or interpretations of the text.
This clause is a standard legal provision to prevent parties from arguing that a heading should override the clear meaning of the text. Prospective Gold Star franchisees should consult with a legal professional to ensure they fully understand their rights and obligations under the franchise agreement, paying close attention to the specific wording of each provision rather than relying on the headings alone.