What is the effect of Budget not enforcing strict compliance with the Budget franchise agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Failure by Budget and/or the Related Entities on the one hand or Licensee on the other, to either enforce any breach or default or series of breaches or defaults in performance by the other; or to exercise any right, power or option given to Budget and/or its Related Entities on the one hand or Licensee on the other hereunder; or to insist upon strict compliance with or performance of the other party's obligations under this Agreement, the Standards (if applicable) or related agreements will not in any event constitute a waiver by Budget and/or the Related Entities on the one hand or Licensee on the other, of the provisions of this Agreement, the Standards (if applicable) or related agreements with respect to any such breach or default, or subsequent breach or default, or Budget's and/or the Related Entities' right on the one hand or Licensee's right on the other at any time thereafter to require exact and strict compliance with the provisions thereof.
No special or restrictive legend on any check or similar item given to a party hereto by the other party hereto, will constitute a waiver, compromise, settlement, "payment in full" or accord and satisfaction.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the failure of Budget to enforce strict compliance with the License Agreement will not constitute a waiver of their right to enforce the agreement in the future. This means that even if Budget does not strictly enforce every term of the agreement initially, they retain the right to demand strict compliance later on.
For a prospective Budget franchisee, this clause means that you cannot assume that a certain term of the agreement is waived simply because Budget has not enforced it in the past. Budget retains the right to insist on strict compliance with all provisions of the License Agreement at any time. This applies to the Standards outlined in the agreement and any related agreements as well.
Additionally, any special or restrictive legend on a check or similar item given to Budget by a franchisee will not be considered a waiver, compromise, settlement, payment in full, or accord and satisfaction. This protects Budget from franchisees attempting to alter the terms of the agreement through payment notations.