Franchising and the Parol Evidence Rule

The parol evidence rule, though a venerable concept in contract law, remains a source of controversy. This key tenet of contract interpretation “bars extrinsic terms agreed upon prior to or at the same time as, a total integration regardless of whether the term is written or oral.” In other words, if the parties intended the document to encompass the entire agreement, evidence of prior or contemporaneous communications — in other words, parol evidence — will not be permitted to alter the terms of the contract, unless the language is ambiguous or some other exception is present