Following termination of the Budget franchise agreement, what assets can Budget transfer to itself or its designee using the power of attorney?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee, in order to secure the performance of Licensee's obligations under this Agreement, hereby irrevocably appoints Budget as its attorney for the limited purposes of executing, signing, perfecting, doing and (if required) registering every such further assurance, document, act or thing as is required to (a) cause discontinuation of Licensee's use of the Marks (or any other related or similar name or use hereunder) and (b) transfer to Budget or its designee, all telephone numbers, facsimile/electronic communication lines, electronic addresses and domain names used by it in the conduct of the Rental Business and airport licenses, concession agreements, leases and permits as specified in Paragraph 8.2, following the termination of this Agreement for any reason.
The exercise by Budget of such power will be conclusive evidence of its right to exercise the same.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to the 2025 Budget Franchise Disclosure Document, Budget is granted power of attorney to transfer specific assets following the termination of the franchise agreement. This power of attorney allows Budget to ensure the discontinuation of the franchisee's use of Budget's trademarks and related names.
Specifically, Budget can transfer to itself or its designee all telephone numbers, facsimile/electronic communication lines, electronic addresses, and domain names used by the franchisee in conducting the rental business. Additionally, Budget can transfer airport licenses, concession agreements, leases, and permits as specified in Paragraph 8.2 of the franchise agreement.
This provision ensures that Budget can maintain control over key operational assets and branding elements after a franchise agreement ends. The franchisee, by signing the agreement, irrevocably appoints Budget as their attorney for these limited purposes, and Budget's exercise of this power is considered conclusive evidence of its right to do so. This transfer is triggered by the termination of the agreement for any reason, highlighting the importance of understanding the conditions under which termination can occur.