In the Budget agreement, what information is expected to follow 'd/b/a Budget Rent A Car of'?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider is made and entered into as of the day of , |
|---|
| , by and between Avis Budget Car Rental, LLC (hereinafter referred to as "Avis Budget |
| 20 |
| Car Rental"), and |
| d/b/a Budget Rent A Car of |
| ("Licensee"). |
| 1. |
| Background. Avis Budget Car Rental and Licensee are parties to that certain |
| Rental |
| System Agreement dated |
| , 20 |
| (the "Rental System Agreement") |
| that has been signed concurrently with the signing of this Rider. This Rider is annexed to and |
| forms part of the Rental System Agreement. This Rider is being signed because (a) the Budget |
| Franchise that Licensee will operate under the License Agreement with Budget Rent A Car |
| System, Inc. (pursuant to which the parties are signing the Rental System Agreement) will be |
| located within the State of New York and Licensee is a resident of the State of New York; and/or |
| (b) any of the offering or sales activity with respect to that License Agreement occurred in the |
| State of New York. Each provision of this Rider will be effective only to the extent, with respect |
| to such provision, that the jurisdictional requirements of the New York franchise disclosure law |
| and its regulations are met independently without reference to this Rider. |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a rider to the Rental System Agreement includes a space for the licensee's information after the phrase "d/b/a Budget Rent A Car of". The document excerpt indicates that the licensee's name is expected to follow this phrase. This rider is applicable when the Budget franchise is located within New York state, and the licensee is a resident of New York, or if any offering or sales activity related to the License Agreement occurred in New York.
This means that if a prospective Budget franchisee is operating in New York, they will need to fill in their name as the licensee in the specified location on the rider. This rider is annexed to and forms part of the Rental System Agreement, indicating its legal relevance to the overall franchise agreement. The rider's provisions are effective only to the extent that the jurisdictional requirements of the New York franchise disclosure law and its regulations are independently met.
For a potential Budget franchisee, this highlights the importance of understanding state-specific requirements, especially in regulated states like New York. It also emphasizes the need to carefully review all appended documents and riders to the franchise agreement, as they contain legally binding terms and conditions that may vary based on location.