What agreement is signed concurrently with the Rider for a Budget Rent A Car franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
d of Paragraph 11.1 of the | | | License Agreement: | | | "However, notwithstanding such release, to the extent required by applicable | | | law, all rights Licensee enjoys and any causes of action arising in Licensee's favor | | | from the provisions of Article 33 of the General Business Law of the State of New | | | York and the regulations issued thereunder shall remain in force; it being the intent | | | of the proviso that the non-waiver provisions of General Business Law 687 and | | | 687.5 be satisfied." | | | 3. | | | Sale, Assignment, and Transfer by Budget. The following language is | | | added at the end of Paragraph 12.1 of the License Agreement: | | | "However, to the extent required by applicable law, no assignment will be made | | | except to an assignee who, in Budget's good faith judgment, is willing and able | | | to assume Budget's obligations under this Agreement." | | | 4. | | | Indemnification of Budget by Licensee. The following language is added to | | | the end of Paragraph 13.1 of the License Agreement: | | | "To the extent required by New York law, the foregoing indemnity shall not apply | | | to liability caused by Licensee's proper reliance or use of procedures or materials | | | provided by Budget." |
- Governing Law and Jurisdiction. The following language is added to
Paragraphs 14.7 and 14.8, of the License Agreement:
"This paragraph shall not be considered a waiver of any right conferred upon Licensee by Article 33 of the General Business Law of the State of New York."
IN WITNESS WHEREOF, the parties hereto have executed and delivered this Rider on the day and year first above written.
BUDGET RENT A CAR SYSTEM, INC.
| By: Print/Type Name: Its: | |
|---|---|
| LICENSEE: | |
| By: | |
| Print/Type Name: | |
RIDER TO BUDGET RENT A CAR SYSTEM RENTAL SYSTEM AGREEMENT REQUIRED BY THE STATE OF NEW YORK
| 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. |
- Applicable Law. The following language is added to Paragraph XII of the Rental System Agreement:
"This paragraph shall not be considered a waiver of any right conferred upon Licensee by Article 33 of the General Business Law of the State of New York."
[The remainder of this page is intentionally left blank.]
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals on the date written below.
AVIS BUDGET CAR RENTAL, LLC.
| By: | |
|---|---|
| Its: | |
| Print or Type Name of Signing Officer | |
| Date: | |
| Print or Type Licensee's Corporate Name | |
| d/b/a BUDGET RENT A CAR OF | |
| By: | |
| Its: | |
| Print or Type Name of Signing Officer | |
| Date: | |
| ON BEHALF OF THE FOLLOWING RAC LOCATIONS: | |
| (Street, Address, City, State) | |
| 1. | |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. | |
| 7. | |
Mailing Address for Notice to Licensee. Attention: RETURN SIGNATURE COPY TO:
Avis Budget Car Rental, LLC. 379 Interpace Parkway Parsippany, NJ 07054 Attention: Office of General Counsel
RIDER TO BUDGET RENT A CAR SYSTEM, INC. LICENSE AGREEMENT FOR THE STATE OF NORTH DAKOTA
| This Rider is entered into this day of, 20 by and between | ||
|---|---|---|
| BUDGET RENT A CAR SYSTEM, INC., a Delaware corporation ("BUDGET") and | ||
| , an, | ||
| ("LICENSEE"). |
Background. Budget and Licensee are .parties to that certain License Agreement dated __________________________, 20__ (the "Franchise Agreement") that has been executed concurrently with the execution of this Rider.
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- The parties wish to modify the Franchise Agreement, upon the terms and conditions set forth herein.
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- NOW, THEREFORE, the parties agree to amend the Franchise Agreement as follows:
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- Notwithstanding anything to the contrary set forth in the Franchise Agreement, and in particular Sections 7.1 and 7.2, payment of all initial fees is deferred until Franchisor has satisfied its pre-opening obligations and Franchisee's Franchised Business opens to the public.
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- "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Notwithstanding anything to the contrary set forth in the Franchise Agreement, and in particular Sections 11.1 and 12.2 thereof, any general release the Licensee is required to assent to shall not apply to any liability Budget may have under the North Dakota Franchise Investment Law.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Rider is signed concurrently with either the Rental System Agreement or the License Agreement, depending on the specific circumstances. For franchisees in New York or Illinois, the Rider is signed alongside the Rental System Agreement. For franchisees in Minnesota or Illinois, the Rider is signed concurrently with the License Agreement.
Specifically, the Rider is annexed to and forms part of either the Rental System Agreement or the License Agreement. The document states that the Rider is required if the Budget franchise will be located in certain states, such as New York, Illinois, or Minnesota, or if any franchise offering or sales activity occurred in those states. The Rider ensures that the jurisdictional requirements of the relevant state's franchise laws are met independently, without relying on the Rider itself.
For prospective Budget franchisees, this means that depending on the state where they will operate their franchise, they will sign a Rider concurrently with either the Rental System Agreement or the License Agreement. This Rider is an integral part of the respective agreement and ensures compliance with state-specific franchise laws. Franchisees should carefully review the Rider and the associated agreement to understand their rights and obligations under the franchise agreement and applicable state laws.