Are oral agreements binding under the All Team franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Entire Agreement.
This Agreement and all other written agreements related to this Agreement and expressly referenced in this Agreement, represent the entire understanding and agreement between the parties with respect to the subject matter of this Agreement, and supersedes all other negotiations, understandings and representations (if any) made by and between the parties.
No representations, inducements, promises or agreements, oral or otherwise, if any, not embodied in this Agreement shall be of any force and effect; provided, however, that nothing in this or any related agreement is intended to disclaim ATFC's representations made in the Franchise Disclosure Document that was furnished to FRANCHISEE in connection with the offering to operate an Agency.
No amendment to this Agreement is binding unless executed in writing by both parties.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, oral agreements are generally not binding. The franchise agreement, along with other written agreements expressly referenced within it, constitutes the entire understanding between All Team and the franchisee. This clause supersedes any prior negotiations, understandings, or representations made by either party.
Specifically, the FDD states that any representations, inducements, promises, or agreements not explicitly included in the written agreement will not be considered valid or enforceable. However, this does not disclaim any representations made by All Team in the Franchise Disclosure Document itself regarding the operation of an agency.
This provision is common in franchise agreements to ensure clarity and prevent disputes based on verbal understandings that may be difficult to prove or may differ from the final written contract. Any amendments to the agreement must be made in writing and executed by both All Team and the franchisee to be considered binding.