According to the Budget agreement, are the Manual and Standards subject to change?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of the Budget License Agreement | Summary | |
|---|---|---|---|
| q. | Non-competition during the term of the franchise | 1.6 and Nondisclosure and Noncompetition Agreement | No involvement in other vehicle rental business or system in the United States. |
| r. | Non-competition covenants after the franchise is terminated or expires | 11.9, 12.6, and Nondisclosure and Noncompetition Agreement | No competing business for one year in licensed territory or within five miles of licensed territory. |
| s. | Modification of the agreement | 14.2(c) | Must be reduced to writing and signed by you and Budget. However, the Manual and Standards are subject to change. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Budget License Agreement can only be modified if the changes are written and signed by both the franchisee and Budget. However, the FDD states that Budget's Manual and Standards are subject to change.
This means that while the core license agreement requires a formal written amendment signed by both parties to change, Budget retains the right to unilaterally modify the operating Manual and Standards.
For a prospective Budget franchisee, this is a significant consideration. Budget could alter operational procedures, customer service protocols, or technology requirements outlined in the Manual and Standards, and franchisees would be obligated to comply with these changes. Franchisees should clarify the process and frequency of changes to the Manual and Standards, as well as the potential costs associated with implementing such changes.