In the event of a stock offering by a Transferring Licensee, what representation regarding Budget's participation or approval of the underwriting, issuance, or offer of the Transferring Licensee's stock must be absent?

According to Budget's 2025 Franchise Disclosure Document, if a Transferring Licensee undertakes a stock offering, the offering documents must not contain any representation, either express or implied, that Budget is participating in, or in any way approves of, the underwriting, the issuance, or the offer of the Transferring Licensee's stock.

Budget reviews requests for approval of any transfer based on its judgment of conditions then prevailing and expected future needs of the System, as to whether and to what extent the proposed transfer will enhance or impair the rights and obligations then existing between Budget and the Licensee, as well as the overall benefit or detriment to the Network.

This requirement ensures that investors do not mistakenly believe that Budget endorses or guarantees the stock offering. It protects Budget from potential liability and maintains the integrity of its brand by preventing misinterpretations about its involvement in the licensee's financial activities. This is a fairly standard practice in franchising, as franchisors typically want to avoid being seen as directly involved in the financial dealings of their franchisees.