Can the Crown Gold Exchange franchise agreement be modified orally?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| s. Modification of the | No modification or amendment of the | |
| agreement | agreement will be effective unless it is in writing and signed by both parties. This | |
| provision does not limit our right to modify the | ||
| Manual or system specifications. | ||
| t. Integration/merger | Only the terms of the agreement are binding | |
| clause | ||
| (subject to state law). Any representations or | ||
| promises outside of the disclosure document | ||
| and franchise agreement (or MUDA) may not | ||
| be enforceable. However, no claim made in | ||
| any franchise agreement (or MUDA) is | ||
| intended to disclaim the express | ||
| representations made in this Disclosure | ||
| Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 29–33)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the franchise agreement cannot be modified or amended orally. Any modifications or amendments must be in writing and signed by both Crown Gold Exchange and the franchisee to be considered effective. However, this provision does not limit Crown Gold Exchange's right to modify the Manual or system specifications.
This requirement for written modifications is a standard practice in franchising. It protects both the franchisee and Crown Gold Exchange by ensuring that all changes to the agreement are documented and agreed upon in writing, preventing potential misunderstandings or disputes that could arise from verbal agreements. Franchisees should be aware that any promises or representations made outside of the written franchise agreement and disclosure document may not be enforceable.
This clause also includes an integration/merger clause, which states that only the terms of the agreement are binding, subject to state law. This reinforces the importance of the written agreement as the definitive source of the terms and conditions of the franchise relationship. However, the franchise agreement does not disclaim the express representations made in the Disclosure Document.