What is the civil penalty that Budget may be liable for if the United States demonstrates non-compliance with the settlement agreement in a civil action?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
pliance with this Agreement at any time. If the Department believes that this Agreement or any portion of it has been violated, it will so notify Avis in writing and it will attempt to resolve the issue or issues in good faith. If the Department is unable to reach a satisfactory resolution of the issue or issues raised within thirty (30) days of the date it provides notice to Avis, it may elect to either:
- (i) institute a civil action in federal district court seeking to enforce the terms of this Agreement. If the United States demonstrates in such a proceeding that Avis has failed to comply with any portion of this Agreement, A
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, if the United States brings a civil action against Budget for failing to comply with any portion of a settlement agreement, Budget may be liable for a civil penalty. This penalty could be $50,000.00, or another amount determined appropriate by the court.
In addition to the civil penalty, if the United States demonstrates that any individual has been negatively affected by Budget's violation of the agreement, Budget must compensate each individual with no less than $5,000. The United States can also pursue other relief as authorized by the Americans with Disabilities Act (ADA).
This means that as a Budget franchisee, it is critical to adhere to all settlement agreements and comply with the ADA to avoid potential financial penalties and legal repercussions. Franchisees should ensure they understand the terms of any settlement agreements and maintain ongoing compliance to mitigate these risks.