Is the Budget franchise agreement fully transferable and assignable by Budget?

According to Budget's 2025 Franchise Disclosure Document, the franchise agreement is fully transferable and assignable by Budget. This means Budget has the right to transfer the agreement to another party, and the agreement will remain in effect with the new assignee. This transfer will also benefit any assignee, transferee, or other legal successor to Budget's interest in the agreement.

However, the franchisee's ability to transfer the agreement is significantly restricted. The agreement is personal to the franchisee, and Budget places confidence in the franchisee's specific ownership. Therefore, the franchisee cannot voluntarily or involuntarily sell, assign, or transfer the agreement, the beneficial ownership of the franchise, or the rental business without Budget's prior written consent. This consent will not be unreasonably withheld, but the franchisee must meet certain transfer requirements, including paying a transfer fee and executing a general release of claims in favor of Budget.

Any attempt by the franchisee to transfer the agreement without Budget's approval is considered a breach of the agreement and will be void. Furthermore, Budget has a right of first refusal if the franchisee proposes to sell, assign, or transfer the agreement. This means Budget has the option to purchase the franchise on the same terms and conditions as the proposed buyer. These provisions ensure Budget maintains control over who operates franchises within its system and protects the brand's integrity.