Following a stock offering, are Budget shareholders allowed to use the word 'Budget' in any other business?

According to Budget's 2025 Franchise Disclosure Document, shareholders are restricted from using the word "Budget" in any other business after a stock offering. Specifically, one of the requirements that Budget imposes on transferring licensees after a stock offering is making certain "that the word 'Budget' is not used in any other business of the shareholders." This condition is designed to protect Budget's brand identity and prevent potential confusion or conflicts of interest.

This restriction is a significant consideration for potential Budget franchisees who may have existing business interests or future plans involving other ventures. It ensures that the Budget brand remains exclusive and isn't diluted by association with other businesses owned by its shareholders. Franchisees need to be aware of this limitation and ensure compliance to avoid potential breaches of the franchise agreement.

This requirement is fairly standard in franchising, as franchisors typically want to maintain strict control over their brand and prevent any unauthorized use of their trademarks. Prospective franchisees should carefully review all terms and conditions related to brand usage and restrictions before entering into a franchise agreement with Budget.