How should disclosures be presented in Budget advertisements communicated through electronic media to be considered 'clear and conspicuous'?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Clearly and conspicuously" shall mean as follows:
- a. In an advertisement communicated through an electronic medium (such as television, video, radio and interactive media such as the Internet and online services), the disclosure shall be presented simultaneously in both the audio and visual portions of the advertisement. Provided, however, that in any advertisement presented solely through visual or audio means, the disclosure may be made through the same means in which the ad is presented. The audio disclosure shall be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it. The visual disclosure shall be of a size and shade, and shall appear on the screen for a duration, sufficient for an ordinary consumer to read and comprehend it.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, when advertising through electronic media like television, video, radio, or interactive online services, disclosures must be presented clearly and conspicuously. This means the disclosure needs to be shown simultaneously in both the audio and visual parts of the advertisement. However, if the ad is only presented visually or audibly, the disclosure can be made through the same method as the ad.
For audio disclosures, the volume and pace must be sufficient for an average consumer to easily hear and understand the information. For visual disclosures, the size and shade of the text, along with the duration it appears on the screen, must allow an average consumer to read and comprehend it.
In essence, Budget requires that all necessary disclosures in electronic advertisements are prominent enough to be easily noticed and understood by consumers, ensuring transparency in their marketing practices. This protects both Budget and its franchisees from potential legal issues related to misleading advertising.