Besides Avis Budget Car Rental, LLC, who is the other party entering into the Rider agreement for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider is made and entered into as of the day of , 20 by |
|---|
| and between Avis Budget Car Rental, LLC. (hereinafter referred to as "Avis Budget 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 executed concurrently with the execution of this Rider. This Rider is |
| annexed to and forms part of the Rental System Agreement. This Rider is being executed because |
| (a) Licensee is a resident of the State of Illinois, and/or (b) 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 Illinois and |
| the offering or sales activity with respect to that License Agreement occurred or will occur in |
| the State of Illinois. Each provision of this Rider shall be effective only to the extent, with respect |
| to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act are |
| met independently without reference to this Rider. |
| 2. |
| Applicable Law. Section XII, Paragraph 5(a) of the Rental System Agreement is |
| deleted in its entirety and the following is substituted in its place: |
| "This Agreement will be governed by and construed under and in accordance |
| with the laws of the State of Illinois without giving effect to its conflicts rules." |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Rider agreement is between Avis Budget Car Rental, LLC and either the Licensee or Budget Rent A Car System, Inc., depending on the specific Rider. Several excerpts from Item 23 describe different Rider agreements related to the Rental System Agreement or License Agreement. For instance, one excerpt specifies a Rider between Avis Budget Car Rental, LLC and "d/b/a Budget Rent A Car of ('Licensee')." Another excerpt identifies a Rider entered into by Avis Budget Car Rental, LLC and Budget Rent A Car System, Inc.
The purpose of these Riders varies. Some Riders address specific state requirements, such as those for Illinois, Minnesota, Maryland, and New York, ensuring compliance with local franchise disclosure laws. These Riders often modify the Rental System Agreement to align with state regulations. For example, the Rider for Maryland alters the governing law of the agreement.
The existence of multiple Rider agreements suggests that Budget franchisees may encounter different versions depending on their location and the specific agreements in place. It is important for prospective franchisees to carefully review all applicable Riders to understand their rights and obligations fully. Franchisees should pay close attention to how these Riders modify the standard agreements and how they affect the franchisee's relationship with both Avis Budget Car Rental, LLC and Budget Rent A Car System, Inc.