According to the FDD, what does the term "Budget" refer to specifically?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In this disclosure document, "Budget" means Budget Rent A Car System, Inc., the franchisor. "You" or "Your" means the person awarded a Budget Franchise. If you are a corporation, partnership, limited liability company, or other business entity, certain provisions of the Budget Rent A Car System License Agreement (together with all Exhibits and ancillary agreements, the "Budget License Agreement" or "License Agreement") (Exhibit H) also will apply to your owners under the Nondisclosure and Noncompetition Agreement (Exhibit C to the Budget License Agreement) and Personal Guarantee (Exhibit A to the Budget License Agreement).
Budget incorporated in Delaware on July 26, 2002. Its principal business address is 379 Interpace Parkway, Parsippany, New Jersey 07054. Budget does not do business under any other name. Budget is a wholly owned subsidiary of Avis Budget Car Rental, LLC ("ABCR"), which in turn is a subsidiary of Avis Budget Group, Inc. ("ABG"), formerly known as Cendant Corporation ("Cendant"). Budget's agents for service of process are listed in Exhibit A.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the term "Budget" refers to Budget Rent A Car System, Inc., the franchisor. The FDD clarifies that "You" or "Your" refers to the person who is awarded a Budget franchise. If the franchisee is a business entity, such as a corporation, partnership, or limited liability company, certain provisions of the Budget License Agreement will also apply to the owners under the Nondisclosure and Noncompetition Agreement and Personal Guarantee.
Budget is a Delaware corporation that was incorporated on July 26, 2002, and its principal business address is located at 379 Interpace Parkway, Parsippany, New Jersey 07054. Budget does not operate under any other name. It is a wholly-owned subsidiary of Avis Budget Car Rental, LLC (ABCR), which is itself a subsidiary of Avis Budget Group, Inc. (ABG), formerly known as Cendant Corporation (Cendant). The FDD also lists Budget's agents for service of process in Exhibit A.
In essence, when the 2025 FDD refers to "Budget," it is specifically referring to the legal entity, Budget Rent A Car System, Inc., which is the company offering and managing the Budget car rental franchise system. This distinction is important for prospective franchisees to understand the legal and corporate structure behind the franchise they are considering.