Can the Baya Bar Multi-Unit Development Agreement be changed or terminated orally?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- Developer agrees that no claims of success or failure have been made to him or her prior to signing this Agreement and that he/she understands all the terms and conditions of this Agreement. Developer further acknowledges that this Agreement contains all oral and written agreements, representations and arrangements between the parties hereto, and any rights which the respective parties hereto may have had under any other previous contracts are hereby cancelled and terminated, and that this Agreement cannot be changed or terminated orally; provided, however, nothing in this Multi-Unit Development Agreement or in any related agreement is intended to disclaim the representations made to Developer in Franchisor's Franchise Disclosure Document.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, the Multi-Unit Development Agreement contains an integration clause specifying that the agreement includes all oral and written agreements between the involved parties. It also states that any prior contracts are canceled and terminated.
Specifically, the agreement states that it cannot be changed or terminated orally. However, the agreement clarifies that this does not disclaim any representations made to the developer in Baya Bar's Franchise Disclosure Document.
This clause is fairly standard in franchise agreements. It protects both the franchisee and Baya Bar by ensuring that all agreements are documented in writing, preventing disputes based on verbal claims or understandings that are not formally recorded. Prospective franchisees should carefully review the entire agreement and disclosure document to ensure they understand all terms and conditions before signing.