What claims are excluded from the general release required for Budget renewal?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The following language is added to the "Summary" section of Item 17(c), entitled Requirements for you to renew or extend, and Item 17(m), entitled Conditions for Budget's approval of transfer, in the Budget License Agreement chart of Item 17:
- "Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law."
The following language is added to the "Summary" sections of Item 17(v), entitled Choice of forum, and 17(w), entitled Choice of law, in the Budget License Agreement chart of Item 17 are amended by adding the following:
"However, the governing choice of law and choice of forum shall not be considered a waiver of any right conferred upon you by the provisions of Article 33 of the General Business Law of the State of New York."
No statement, questionnaire or acknowledgement 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, in Maryland, any release required as a condition of renewal will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This means that Budget franchisees in Maryland cannot be forced to waive rights or claims protected under Maryland franchise law as a condition of renewing their franchise agreement. This ensures that franchisees retain their legal protections and recourse even when renewing their agreement.
Similarly, in New York, the governing choice of law and choice of forum shall not be considered a waiver of any right conferred upon you by the provisions of Article 33 of the General Business Law of the State of New York. This applies to the Budget License Agreement, the Confidentiality Agreement, and the Rental System Agreement. This provision ensures that New York franchisees do not waive their rights under New York law regarding choice of law or forum, even if the franchise agreement specifies otherwise.
Furthermore, no statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Budget or someone acting on their behalf. This provision is applicable across the franchise system and supersedes any other conflicting terms in any document executed with the franchise. This protects franchisees from unintentionally waiving legal rights or claims based on misrepresentations made during the franchise sales process.