What documents are subject to change during the term of the Budget License Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of the Budget License Agreement | Summary | |
|---|---|---|---|
| q. | Non-competition during the term of the franchise | 1.6 and Nondisclosure and Noncompetition Agreement | No involvement in other vehicle rental business or system in the United States. |
| r. | Non-competition covenants after the franchise is terminated or expires | 11.9, 12.6, and Nondisclosure and Noncompetition Agreement | No competing business for one year in licensed territory or within five miles of licensed territory. |
| s. | Modification of the agreement | 14.2(c) | Must be reduced to writing and signed by you and Budget. However, the Manual and Standards are subject to change. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Budget Manual and Standards are subject to change during the term of the Budget License Agreement. While modifications to the Budget License Agreement itself must be in writing and signed by both the franchisee and Budget, the Manual and Standards can be altered by Budget without requiring the franchisee's signature or written consent.
This is a common practice in franchising, as franchise systems need to adapt to changing market conditions, customer preferences, and industry best practices. The Budget Manual typically contains detailed operating procedures, brand standards, and marketing guidelines. The Standards likely refer to specific requirements for facility appearance, customer service, and vehicle maintenance.
For a prospective Budget franchisee, this means that the rules and guidelines for operating their franchise could change over time. While Budget is likely to communicate these changes to franchisees, it's important to recognize that franchisees will be obligated to comply with the updated Manual and Standards. Franchisees should stay informed of any updates and be prepared to adapt their business practices accordingly. It would be prudent for a potential franchisee to inquire about the frequency and nature of past changes to the Manual and Standards to better understand the scope of potential future changes.