How does Budget designate the authorized geographic area for operating a Budget Franchise?

Before you open your business, Budget will:

1. Approve the trade name for your Budget Franchise (the Budget License Agreement, initial recital of parties).

• 1. Designate your territory.

Your authorization to operate a Budget Franchise is limited to an authorized geographic area (the Budget License Agreement, paragraph 1.5, the Summary Pages) (see Item 12).

• 1. Furnish your General Manager and other employees Budget approves with instruction on the operation of a Budget Franchise, as further described in this Item (the Budget License Agreement, paragraphs 4.1 and 4.2).
• 1. Calculate your Initial License Purchase Fee (the Budget License Agreement, paragraph 7.1 and the Summary Pages) (see Item 5).
• 1. Establish minimum annual License Fees based on your territory and the expected business demand in that territory (the Budget License Agreement, paragraph 7.2) (see Item 6).
• 1. Establish a minimum number of rental offices for your territory, based on the expected business demand and any needs of the airport and central business district in your territory (the Budget License Agreement, paragraph 8.1 and the Summary Pages).
• 1. Establish the deadline for you to open your Budget Franchise.

If you fail to find a location that Budget approves and open and begin operating your Budget Franchise within the time period Budget specifies, Budget may terminate your Budget License Agreement (the Budget License Agreement, paragraph 8.4 and the Summary Pages).

• 1. Approve your selection of one or more locations that meet Budget's criteria, which must be within your licensed territory (see Item 12).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)