Under what conditions will modifications or variations to the Budget franchise agreement be binding on the parties?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Amendments. No amendment or other modification of this Agreement will be valid or binding on either party hereto unless reduced to writing and executed by the parties hereto.
14.21 Parole Evidence Disclaimer.
This Agreement may not be modified or amended except by written agreement signed by the parties.
The words "this Agreement" as used in this Agreement and the Standards will mean any such future modifications unless otherwise indicated by the context.
No salesperson, representative or other person has the authority to bind or obligate Budget in any way, except by an instrument in writing duly executed by the president or any vicepresident of Budget.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, any amendment or modification to the franchise agreement must be in writing and executed by both parties to be considered valid and binding. This requirement ensures that all changes are formally documented and agreed upon, preventing disputes based on verbal agreements or misunderstandings. This is a standard practice in franchising to provide clarity and legal certainty.
Budget's FDD specifies that the entire agreement between the parties includes the agreement itself, its summary pages, exhibits, and schedules. It also integrates the Standards and Programs by reference, meaning these are also part of the binding agreement. The FDD explicitly states that there are no other oral or written understandings or agreements between the parties related to the subject matter, except as provided in the written agreement. This clause is designed to prevent reliance on prior negotiations or representations that are not included in the final written contract.
Furthermore, the FDD emphasizes that no salesperson, representative, or other person has the authority to bind or obligate Budget in any way, except through a written instrument duly executed by the president or any vice president of Budget. This provision reinforces the importance of formal written agreements and limits the ability of unauthorized individuals to make binding commitments on behalf of Budget. This protects both Budget and the franchisee by ensuring that only authorized representatives can make contractual changes.
In essence, a prospective Budget franchisee should understand that any modifications or variations to their franchise agreement must be formally documented in writing and signed by authorized representatives of both the franchisee and Budget to be legally enforceable. This requirement is in place to protect both parties and ensure clarity and accountability in the franchise relationship.