Regarding the Budget agreement, is any statement, promise, or agreement not contained in the written agreement enforceable?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
No representations, promises, guarantees, projections, or warranties of any kind have been made by Budget to induce the execution of this Agreement or in connection with this Agreement except as specifically set forth in writing herein or contained within the Franchise Disclosure Document.
Licensee acknowledges that neither Budget nor any other party has guaranteed Licensee's success in the business contemplated by this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, no representations, promises, guarantees, projections, or warranties have been made by Budget to induce the execution of the agreement, except as specifically set forth in writing within the agreement or the Franchise Disclosure Document. This means that if a potential franchisee is relying on something that is not written in either of those two documents, it is not enforceable.
This clause protects Budget from claims based on verbal promises or representations made by its employees or representatives that are not documented in the franchise agreement or FDD. It also reinforces the importance of prospective franchisees carefully reviewing all written documents and seeking clarification on any points of concern before signing the agreement. Franchisees acknowledge that Budget has not guaranteed their success in the business.
This type of clause is common in franchise agreements to provide clarity and certainty regarding the terms of the relationship and to prevent disputes based on undocumented claims. Prospective franchisees should be aware that any promises or guarantees not explicitly stated in the written agreement or FDD may not be legally binding.