Where in the Budget FDD can I find the Expiration Date of the initial term?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will commence upon the Effective Date and, unless sooner terminated as hereinafter provided, remain in force until the Expiration Date identified in the Summary Pages (Section 8). Thereafter, this Agreement may renew, for successive five (5) year terms for a Renewal Fee identified in the Summary Pages (Section 10(r)) in advance of such renewal. Each successive five (5) year term shall commence upon the expiration of the previous term, provided that the following conditions are met at least thirty (30) days prior to the expiration of the applicable term: (a) Licensee is not then in default of any provision of this Agreement or the then-current form of License Agreement of Budget; (b) Licensee is then owned by the same beneficial owners as own Licensee currently or by their Permitted Transferees (as defined in Paragraph 12.2(b)); (c) Licensee signs the then-current form of License Agreement, appropriately amended to reflect the material economic terms contained within the then-current form of License Agreement, where applicable; (d) Licensee upgrades the Rental Business to conform to any then-current System Standards and specifications, and (e) Licensee and its owners sign a general release, in a form satisfactory to Budget, of any and all claims against Budget and its Related Entities and their respective shareholders, officers, directors, employees, agents, representatives, successors and assigns; provided, however, such general release will exclude thenexisting litigation between Licensee and Budget or the Related Entities and the then-existing claims of Licensee against Budget or the Related Entities in the ordinary course of business under this Agreement or any other agreement between such parties, which litigation and claims will be
identified in such release. If such conditions are not met within the prescribed time period referred to above prior to the expiration of the current term, such term will expire upon the Expiration Date previously established in accordance with this Paragraph 11.1. Budget agrees to provide Licensee with notice of the approaching expiration of any term and the documentation referenced above sufficiently in advance of such expiration date for Licensee to comply with the renewal provisions of this Paragraph 11.1.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the expiration date of the initial franchise term can be located in the Summary Pages, specifically Section 8. The initial term of the agreement commences upon the effective date and remains in force until the expiration date, unless terminated earlier as per the agreement's provisions.
Following the initial term, the agreement may be renewed for successive five-year terms, provided certain conditions are met. These conditions include the franchisee not being in default, maintaining the same beneficial owners, signing the then-current form of the license agreement, upgrading the rental business to conform to current system standards, and signing a general release of claims against Budget. A renewal fee, which is identified in Section 10(r) of the Summary Pages, is required for each renewal term.
Budget is obligated to provide the franchisee with advance notice of the approaching expiration of any term, along with the necessary documentation, to allow the franchisee sufficient time to comply with the renewal provisions. If the renewal conditions are not met within the specified timeframe, the term will expire on the previously established expiration date. This ensures that franchisees are aware of the steps required to continue their franchise agreement and provides clarity on the renewal process.