In the context of this rider, what is the role of Budget Rent A Car System, Inc.?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider is entered into this day of BUDGET RENT A CAR SYSTEM, INC., a I | Delaware corporation ("BUDGET") and |
|---|---|
| ("PROSPECTIVE LICENSEE"). | , |
| 1. Background . BUDGET and PROSP certain "Confidentiality Agreement" dated concurrently with the execution of this Rider. This R Confidentiality Agreement. This Rider is being execute is a resident of the State of Illinois, and/or (b) the Budget will operate if it signs a License Agreement with BUDGI and the offering or sales activity with respect to the License State of Illinois. Each provision of this Rider shall to such provision, that the jurisdictional requirements and met independently without reference to this Rider. | ed because (a) PROSPECTIVE LICENSEE Franchise that PROSPECTIVE LICENSEE ET will be located within the State of Illinois tense Agreement occurred or will occur in be effective only to the extent, with respect |
| 2. Law and Jurisdiction . Paragraph 7 of in its entirety and replaced with the following: | of the Confidentiality Agreement is deleted |
| "This Agreement is intended to be a contract laws of the State of Illinois." | governed and construed under the internal |
| IN WITNESS WHEREOF, the parties hereto on the day and year first above written. | have executed and delivered this Rider PROSPECTIVE LICENSEE By:_ Its:_ |
| Accepted and Acknowledged: | |
| BUDGET RENT A CAR SYSTEM, INC. | |
| By: |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to the 2025 FDD, Budget Rent A Car System, Inc., identified as "BUDGET" in the rider, is one of the parties entering into the agreement. The rider is often signed because the Budget franchise that the Licensee will operate under a License Agreement with Budget Rent A Car System, Inc., will be located in a specific state. This triggers the need to ensure compliance with that state's franchise laws.
Budget's role involves ensuring that the jurisdictional requirements of the specific state's franchise laws are met independently, without relying solely on the rider. This suggests that Budget is responsible for overseeing that franchisees comply with local regulations and that the franchise agreement aligns with state-specific legal requirements. The rider serves to modify or clarify certain aspects of the standard agreements to align with these state laws.
Furthermore, Avis Budget Car Rental, LLC may also be a party to the rider, especially when it relates to the Rental System Agreement. In these instances, Budget Rent A Car System, Inc. is the entity under which the Licensee will operate the Budget franchise. The rider ensures that the Rental System Agreement and the License Agreement work in conjunction while adhering to the necessary state regulations. This coordinated approach helps protect both Budget and the franchisee by ensuring legal compliance within the specific jurisdiction.