What action is a prospective licensee required to take regarding Budget's Operating Manual and confidential information upon completion of the evaluation process?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Upon completion of the evaluation process, PROSPECTIVE LICENSEE shall return to BUDGET all copies of the Operating Manual and all other tangible embodiments containing any Confidential Information, including any notes or analyses made by PROSPECTIVE LICENSEE or any Permitted Party.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a prospective licensee is obligated to return all copies of the Operating Manual and any tangible materials containing confidential information to Budget upon completion of the evaluation process. This includes any notes or analyses made by the prospective licensee or any permitted party.
This requirement ensures that Budget's confidential information and trade secrets remain protected, regardless of whether the prospective licensee decides to enter into a License Agreement with Budget. The return of these materials prevents unauthorized use or disclosure of sensitive business information.
Failure to comply with this requirement could result in legal action by Budget, as a breach of the confidentiality agreement can cause irreparable injury. Budget is entitled to injunctive relief without bond to stop any conduct violating the agreement and can recover attorney's fees, court costs, and other expenses incurred in enforcing the agreement.