What is the Concessionaire's obligation regarding changes to Budget's signage requirements?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2. Signage, etc. Concessionaire hereby consents to Licensee's use and display on the Premises of such exterior and interior signs, posters, promotional materials, and equipment, furnishings, and decor as are currently required by Budget pursuant to the License Agreement. In the event that such requirements are changed in the future, Concessionaire agrees that it will not unreasonably withhold its consent to Licensee's compliance with such changes. In the event that local ordinances or zoning requirements prohibit the use of Budget's standard signage, Budget will not unreasonably withhold its consent to the modification of its standard signage to comply with such requirements.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Concessionaire's obligation regarding changes to Budget's signage is outlined in relation to the License Agreement. The Concessionaire initially consents to the Licensee's use and display of exterior and interior signs, posters, promotional materials, equipment, furnishings, and decor as required by Budget.
In the event that Budget changes these requirements in the future, the Concessionaire agrees not to unreasonably withhold consent to the Licensee's compliance with such changes. This indicates that while the Concessionaire has the right to review and potentially object to changes, they cannot do so without a reasonable basis.
Furthermore, if local ordinances or zoning requirements prohibit the use of Budget's standard signage, Budget agrees not to unreasonably withhold its consent to the modification of its standard signage to comply with such requirements. This demonstrates a degree of flexibility from Budget to ensure compliance with local laws, and implies that the franchisee will need to work with Budget to ensure signage meets local requirements.