In the event of litigation regarding the Budget settlement agreement, which court has jurisdiction?

According to Budget's 2025 Franchise Disclosure Document, the Licensee agrees that Budget may start an action against the Licensee in any state or federal court of competent jurisdiction in the State of New Jersey. The Licensee also submits to the jurisdiction of those courts and waives any objection to the jurisdiction or venue of that court. However, for claims arising out of the Maryland Franchise Registration and Disclosure Law, Maryland law provides that the Licensee may bring an action in Maryland.

For prospective Budget franchisees, this means that if Budget initiates a lawsuit against them, it will likely occur in New Jersey, regardless of where the franchisee's business is located (except for certain claims arising out of Maryland Franchise Registration and Disclosure Law). The franchisee consents to the jurisdiction of New Jersey courts. This could increase legal costs for franchisees who do not reside in New Jersey, as they may need to travel and hire legal representation from that state.

It is important to note that Minnesota law includes some stipulations that may affect the jurisdiction. For instance, the FDD states that the consent to jurisdiction shall not in any way abrogate or reduce a Licensee's rights as provided in Minnesota Statutes, including any right to submit matters to the jurisdiction of the courts of Minnesota. Franchisees should consult with a legal professional to understand the full implications of these clauses, especially if their franchise is located in Maryland or Minnesota.