What actions or circumstances will NOT affect the obligations of the Guarantors under the Budget Guarantee?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The obligations of the Guarantors hereunder will not be affected by any act, omission or circumstances which but for this Guarantee might operate to release or otherwise exonerate the Guarantors from their obligations hereunder or affect such obligations, including, without limitation and whether or not known to the Guarantors, Budget or Licensee:
(a) Any time, indulgence or concession granted to or with Licensee or any other person; or
(b) The taking, variation, compromise, renewal or refusal or neglect to perfect or enforce any rights, remedies or securities against or granted by Licensee or any other person; or
(c) Any variation or extension of the due date for performance of any obligation of Licensee referred to herein, to the extent that the Guarantors' obligations hereunder will apply to such term as varied or in respect of the extended due date; or
(d) Any irregularity, unenforceability or invalidity of any obligation of Licensee referred to in Paragraph 1 or any present or future law or order of any government or authority purporting to reduce or otherwise affect any such obligation; or
(e) The death or insolvency of the Licensee or any Guarantor; or
(f) Any security held or taken at any time by Budget being void, defective, or informal; or
(g) Budget entering into any deed of priority or postponement in relation to any security held or taken at any time by Budget; or
(h) Any modification or addition to, or termination of the obligation of Licensee referred to in Paragraph 1.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, several actions or circumstances will not affect the obligations of the Guarantors under the Guarantee. These include granting any time, indulgence, or concession to the Licensee or any other person, as well as taking, varying, compromising, renewing, or refusing to perfect or enforce any rights, remedies, or securities against the Licensee or any other person. Any variation or extension of the due date for performance of any obligation of the Licensee will also not affect the Guarantors' obligations.
Furthermore, the Guarantors' obligations remain intact regardless of any irregularity, unenforceability, or invalidity of any obligation of the Licensee, or any present or future law or order purporting to reduce or otherwise affect such obligation. The death or insolvency of the Licensee or any Guarantor does not release the Guarantors from their obligations. Similarly, any security held by Budget being void, defective, or informal, or Budget entering into any deed of priority or postponement in relation to any security held by Budget, will not impact the Guarantors' obligations.
Finally, any modification or addition to, or termination of, the obligation of the Licensee does not affect the Guarantors' obligations under the Guarantee. This comprehensive list ensures that the Guarantors remain liable under the Guarantee, protecting Budget's interests in various scenarios related to the Licensee's performance and financial stability. This is a fairly standard clause in franchise agreements, as franchisors want to ensure they are protected should the franchisee default.