What documents must beneficial owners and principal officers of a Budget Franchise sign?

According to Budget's 2025 Franchise Disclosure Document, beneficial owners and principal officers of a Budget franchise must sign certain documents included in the Budget License Agreement. Specifically, they must sign Budget's Nondisclosure and Noncompetition Agreement.

This requirement ensures that individuals with significant ownership or leadership roles within the franchise are legally bound to protect Budget's confidential information and refrain from engaging in competitive activities that could harm the franchise system. The franchisor, Budget, may also negotiate provisions in this section for the Budget License Agreements it offers to Budget Licensees.

For a prospective franchisee, this means that if you have beneficial owners or principal officers involved in your Budget franchise, they will be required to sign these agreements. It is important to carefully review these documents with legal counsel to understand the full scope of their obligations and restrictions, particularly those related to confidentiality and non-competition, as these can have significant implications for future business activities.