Is a Management Recruiters franchisee authorized to act on behalf of the franchisor?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
- **2.5.
License Only.** The Parties hereto acknowledge that this Agreement and the rights granted herein are a license only, that Franchisee is acting independently in Franchisee's own business and is not authorized to act for or on behalf of Franchisor or any of its Affiliates, and that Franchisor is not authorized to direct the day-to-day operations of Franchisee's business or the acts of Franchisee's agents or employees.
None of the acts or commitments of Franchisee shall in any manner bind or obligate Franchisor or any of its Affiliates.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the franchisee is not authorized to act for or on behalf of the franchisor. The agreement between Management Recruiters and the franchisee is a license only, establishing that the franchisee operates independently.
This means that the franchisee is running their own business and cannot legally bind Management Recruiters to any agreements, warranties, or debts unless expressly authorized by the franchise agreement. The franchisee must also ensure they conspicuously identify themselves as an independent operator of a Management Recruiters franchise in all transactions.
However, the franchisee irrevocably appoints Management Recruiters as their attorney-in-fact under specific conditions. Management Recruiters can direct the Telephone Company to assign telephone numbers and listings to them if the Franchise Agreement is terminated or expires and Management Recruiters instructs the franchisee to do so. Additionally, Management Recruiters is granted power of attorney to manage and operate the franchisee's office in the event of a default under the lease or the Franchise Agreement.