In the event of a stock offering by a Budget licensee, what agreement must all beneficial owners of the stock execute?

According to Budget's 2025 Franchise Disclosure Document, if Budget consents to a stock offering by a licensee, all beneficial owners must execute Budget's Non-Disclosure/Non-Compete Agreement. This requirement is designed to protect Budget's confidential information and maintain fair competition within its franchise network.

This provision ensures that individuals with a vested interest in the Budget franchise are legally bound to protect the brand's proprietary information and refrain from engaging in activities that could harm the franchise system. This is a common practice in franchising to safeguard the franchisor's business model and competitive advantage.

For a prospective Budget franchisee, this means that if you plan to offer stock in your franchise, you and all beneficial owners will be required to sign a Non-Disclosure/Non-Compete Agreement. It is important to carefully review the terms of this agreement, which is included as Exhibit C in the FDD, to understand the restrictions and obligations it imposes.