Does ABCR for Budget warrant or guarantee that the System and Licensee's Equipment will be completely secure and free from unauthorized intrusion, use and access, even if the Controls are implemented and observed?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Licensee acknowledges that although ABCR may use and prescribe commercially reasonable means and methods to secure the System and Licensee's Equipment from unauthorized intrusion, use and access, no such means and methods are foolproof, absolute or perfect as security measures. ABCR does not warrant or guarantee that the System and Licensee's Equipment will be completely secure and free from unauthorized intrusion, use and access, even if the Controls are implemented and observed.
- (b) ABCR acknowledges that although Licensee may use commercially reasonable efforts to install, maintain, implement and observe means and methods prescribed by ABCR to safeguard the System from unauthorized use, no such means and methods are foolproof, absolute or perfect as security measures. Licensee does not warrant or guarantee that the System will be completely secure and free from unauthorized intrusion, use and access, even if the Controls are implemented and observed.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, ABCR does not guarantee complete security of the System and Licensee's Equipment. Even with the implementation and observation of security controls, ABCR does not warrant that the system will be completely secure and free from unauthorized access.
Budget acknowledges that while ABCR may use commercially reasonable methods to secure the System and Licensee's Equipment, these measures are not foolproof. Similarly, Budget franchisees also cannot guarantee complete security, even with the implementation of prescribed safeguards. This highlights the inherent risks associated with data security and the limitations of even the most diligent efforts.
This disclaimer emphasizes the importance of franchisees understanding their responsibilities in maintaining data security. Franchisees are expected to employ available controls and commercially reasonable security measures. Licensees are responsible for any damages resulting from unauthorized access during periods when security controls are not in place on their equipment.