Does Management Recruiters have any obligation or liability under any agreement, representation, or warranty made by the Franchisee that is not expressly authorized by the agreement?

According to Management Recruiters' 2024 Franchise Disclosure Document, Management Recruiters is not bound by any unauthorized acts or commitments made by the franchisee. Specifically, the franchise agreement explicitly states that the franchisee operates independently and is not authorized to act on behalf of Management Recruiters or its affiliates. This means that franchisees cannot make agreements or representations that would obligate Management Recruiters unless they have express authorization.

This provision protects Management Recruiters from liability for actions taken by franchisees that are outside the scope of the franchise agreement. It reinforces the independent contractor status of the franchisee and ensures that Management Recruiters maintains control over its brand and reputation. Franchisees must be aware that they are solely responsible for their own business operations and cannot bind Management Recruiters to any commitments they make without prior authorization.

For a prospective Management Recruiters franchisee, this clause highlights the importance of understanding the limits of their authority. Franchisees should ensure they have proper authorization before entering into any agreements or making representations that could potentially involve Management Recruiters. Failure to do so could result in the franchisee being solely liable for any resulting obligations or damages. This also means that Management Recruiters is not authorized to direct the day-to-day operations of Franchisee's business or the acts of Franchisee's agents or employees.