Does Budget have certain presumptive legal rights for trademarks not registered with the PTO?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
We may authorize you to use other trademarks in the operation of your Budget Franchise that are not registered with the PTO. By not having a Principal Register federal registration for these marks, Budget does not have certain presumptive legal rights granted by a registration. Budget nevertheless has enforceable common law rights in those marks to the extent they have been used in commerce
You must follow Budget's rules when you use any of Budget's Proprietary Marks. You cannot use a name or mark as part of a corporate name or with modifying words, designs, or symbols, except for those
that Budget licenses to you, or in any modified form. You may not use Budget's Proprietary Marks in connection with the sale of any unauthorized product or service or in any manner that Budget does not expressly authorize in writing. You may not use Budget's Proprietary Marks as part of an electronic address or a domain name except in the form Budget approves. You must display Budget's Proprietary Marks prominently and in the manner Budget specifies on signs, forms, and other materials Budget designates.
Source: Item 13 — TRADEMARKS (FDD pages 63–64)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget may authorize franchisees to use trademarks that are not registered with the United States Patent and Trademark Office (PTO). While Budget does not have the same presumptive legal rights for unregistered trademarks as it does for registered ones, Budget maintains enforceable common law rights in those marks if they have been used in commerce. This means that even without federal registration, Budget can still protect its trademarks based on actual usage and recognition in the marketplace.
For a prospective Budget franchisee, this implies that some of the trademarks they use may not have the full protection of federal registration. However, Budget still has rights to those marks and can enforce them based on common law. Franchisees must adhere to Budget's rules when using any of Budget's proprietary marks and cannot use them in unauthorized ways, such as with modifying words or in connection with the sale of unauthorized products or services. Franchisees also cannot use Budget's proprietary marks as part of an electronic address or domain name without approval.
Budget retains control over any litigation or administrative proceedings related to the infringement or challenge of its proprietary marks. Franchisees are required to notify Budget immediately if they become aware of any infringement or challenges to the use of Budget's marks. While Budget will take action as it deems appropriate, it is not obligated to indemnify or defend franchisees against claims arising from their use of Budget's proprietary marks. Franchisees may be required to modify or discontinue the use of any of Budget’s proprietary marks at Budget’s direction, but Budget will reimburse tangible costs of compliance, such as changing signs.