What articles of the Budget License Agreement discuss honoring National Account agreements and participating in Programs?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | ITEM IN DISCLOSURE DOCUMENT |
|---|---|---|
| w. Non-competition covenants | 1.6 and 11.9 and the Nondisclosure and Noncompetition Agreement of the Budget License Agreement | Item 17 |
| x. Dispute Resolution | 14.9 to 14.13 of the Budget License Agreement XIX of the Intercity Program | Item 17 |
| y. Intercity Rentals | The Intercity Rules and Regulations | Items 1, 6, 8, 16, and 17 |
| z. Personal Guarantee | 12.7 and Exhibit A of the Budget License Agreement were intentionally deleted | Items 1, 7, 15 |
| aa. Assignment of account | 7.7 and 14.5 of the Budget License | |
| and other receivables | Agreement | |
| bb. Lien on equipment and | 7.7 of the Budget License Agreement | |
| property | ||
| cc. Honor National Account agreements and participate in Programs | Art. VI. 9.13, 11.10 and VI of the Budget License Agreement | Items 1, 6, 11, and 12 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the sections of the Budget License Agreement that pertain to honoring National Account agreements and participating in Programs are specified in Article VI, sections 9.13, 11.10, and Article VI. These obligations are further detailed in Items 1, 6, 11, and 12 of the disclosure document.
For a prospective franchisee, this means that the Budget License Agreement legally binds them to adhere to the terms and conditions set forth in these articles regarding National Account agreements and participation in various programs. These programs could include marketing initiatives, customer loyalty programs, or other operational standards that Budget implements across its franchise network.
Understanding these obligations is crucial, as non-compliance could potentially lead to penalties or termination of the franchise agreement. It is important for potential franchisees to carefully review these sections of the Budget License Agreement with legal counsel to fully grasp the extent of their responsibilities and the implications of these requirements. This ensures that they are prepared to meet these obligations and can effectively integrate them into their business operations.