Regarding agreements or representations, what limitations exist for Management Recruiters franchisees and the franchisor in creating obligations on behalf of each other?

According to Management Recruiters' 2024 Franchise Disclosure Document, there are specific limitations regarding the ability of the franchisee or franchisor to create obligations on behalf of each other. Except as expressly authorized in the Franchise Agreement, neither the franchisee nor Management Recruiters can make any agreement, warranty, guaranty, or representation, either expressed or implied, or incur any debt in the name of or on behalf of the other party.

This means a Management Recruiters franchisee cannot represent that they are acting on behalf of the franchisor unless the agreement explicitly allows it. Similarly, Management Recruiters cannot make commitments or incur debts on behalf of the franchisee unless specifically authorized in the agreement. This provision is designed to ensure that each party remains independent and is responsible for its own actions and obligations.

The franchise agreement also states that neither party shall represent their relationship as anything other than that of independent contractors or franchisor and franchisee. Furthermore, neither party has any obligation or liability under any agreement, representation, or warranty made by the other that is not expressly authorized by the agreement. This reinforces the independent nature of the relationship and limits potential liabilities arising from unauthorized actions or representations.