When does the agreement between Avis and the Department of Justice expire, affecting Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This Agreement shall become effective as of the date of the last signature below (the "Effective Date") and shall expire on the date that is seven (7) years from the Effective Date. This Agreement shall be binding on Avis and its successors and assigns. The owners and operators of Avis have a duty to so notify all such successors in interest.
Copies of the settlement agreement are available from the United States or Budget.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to the 2025 FDD, a Settlement Agreement exists between Avis and the United States Department of Justice under the Americans with Disabilities Act. This agreement originated from a complaint investigated by the Department regarding Avis's provision of hand controls for renters with disabilities. Budget is mentioned in relation to this agreement because copies of the settlement agreement are available from both the United States Department of Justice and Budget.
The agreement became effective on the date of the last signature and will expire seven years from that effective date. The agreement binds Avis and its successors and assigns, with a duty to notify any successors in interest. The Department of Justice retains the right to review compliance and may institute civil action in federal district court if violations are believed to have occurred, after providing Avis with a ten-day opportunity to address the alleged violation.
While the FDD mentions the agreement's expiration being seven years from the effective date, the specific effective date (i.e., the date of the last signature) is not provided in this excerpt. A prospective Budget franchisee should seek clarification from Budget regarding the exact effective date of the agreement to determine its expiration date and understand any ongoing obligations or potential liabilities arising from it.