Does Red Wagon Club warrant that it has the authority to enter into the agreement?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Mutual Representations. Each Party represents and warrants to the other Party that, as of the Effective Date: (i) it is duly organized, validly existing, and in good standing under the laws of the state or jurisdiction of its organization; (ii) it has the full right, power, and authority to enter into this Agreement and to perform its obligations hereunder; (iii) the execution of this Agreement by its representative whose signature is set forth at the end hereof has been duly authorized by all necessary organizational action of such Party; and (iv) when executed and delivered by such Party, this Agreement will constitute the legal, valid, and binding obligation of that Party, enforceable against that Party in accordance with its terms.
Source: Item 23 — RECEIPTS (FDD pages 47–142)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, each party, including Red Wagon Club, represents and warrants to the other party that it has the full right, power, and authority to enter into the agreement and fulfill its obligations. This means Red Wagon Club assures the franchisee that it is duly organized, validly existing, and in good standing under the laws of its jurisdiction.
Furthermore, Red Wagon Club confirms that the execution of the agreement by its representative has been duly authorized by all necessary organizational actions. This provides assurance to the franchisee that the person signing on behalf of Red Wagon Club has the authority to do so.
Red Wagon Club also warrants that when the agreement is executed and delivered, it will constitute a legal, valid, and binding obligation, enforceable against Red Wagon Club in accordance with its terms. This representation is a standard practice in franchising, ensuring that both parties are legally bound by the terms of the agreement.