Are oral agreements or representations binding on Buildingstars if they are not in the written agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned Guarantors also recognize that certain disputes relating to the Franchise Agreement are to be resolved by arbitration and hereby consent to such arbitration. The terms contained in the Franchise Agreement and this Guarantee and Assumption of Obligations constitute the entire agreement between the parties, and there are no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the terms outlined in the Franchise Agreement and the Guarantee and Assumption of Obligations constitute the entire agreement between the parties. This explicitly states that any representations, inducements, promises, or agreements, whether oral or otherwise, that are not included in the written agreement are not binding.
This provision protects Buildingstars from claims based on verbal promises or understandings that are not documented in the franchise agreement. It also ensures that franchisees cannot later claim they were induced into signing the agreement based on representations not found within the written contract. This is a standard clause in franchise agreements to provide clarity and prevent disputes based on differing recollections of conversations or understandings.
For a prospective Buildingstars franchisee, this means it is crucial to ensure that all material terms, conditions, and promises are explicitly written into the franchise agreement. Any verbal assurances or agreements made during the negotiation process should be documented in writing and included as part of the final agreement to be enforceable. Relying on oral promises without written confirmation carries the risk that such promises will not be legally binding on Buildingstars.