In the Budget franchise agreement, what paragraph specifies the airport licenses, concession agreements, leases, and permits that can be transferred?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2 Licenses, Concession Agreements, Leases and Permits. Licensee will use its best efforts to obtain provisions in its licenses, concession agreements, leases and permits providing that (a) Budget will receive written notice of any default by Licensee under such license, concession agreement, lease or permit and an opportunity to cure such default for a period of thirty (30) days after receipt of such notice, (b) upon termination of this Agreement for any reason, such licenses, concession agreements, leases and permits will be deemed assigned to Budget subject to acceptance of said assignment by Budget (at its option), (c) the lessor or other party to such license, concession agreement, lease or permit is authorized to deliver to Budget all information in its possession regarding the Rental Business, and (d) Budget will be authorized to enter the premises upon termination of this Agreement to remove materials and signage containing the Marks. At Budget's option, Licensee agrees that whenever it seeks to operate from an airport, it will obtain the entry by the applicable airport authority into the Contingent Assignment of Airport Concession Agreement attached as Exhibit D or such other similar agreement previously approved by Budget in writing. Budget reserves the right to negotiate directly with some or all airport authorities in the Territory to obtain its own airport concession agreements, which it will sublease to Licensee. Licensee agrees to cooperate fully with Budget in its efforts, and to honor all of Budget's and its obligations under said Airport Concession Agreement.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Paragraph 8.2 of the franchise agreement outlines the specifics regarding the transfer of airport licenses, concession agreements, leases, and permits. Specifically, Paragraph 8.2 requires Budget licensees to use their best efforts to ensure that their licenses, concession agreements, leases, and permits include provisions that protect Budget's interests.
These provisions include Budget receiving written notice of any default by the licensee and an opportunity to cure the default within 30 days. Additionally, upon termination of the franchise agreement, these licenses, concession agreements, leases, and permits will be deemed assigned to Budget, subject to Budget's acceptance. The lessor or other party to such agreements must also be authorized to provide Budget with all relevant information about the Rental Business.
Furthermore, Budget is authorized to enter the premises after the agreement terminates to remove any materials and signage that contain Budget's trademarks. Budget also reserves the right to negotiate directly with airport authorities to obtain its own airport concession agreements, which it can then sublease to the licensee. The licensee is obligated to cooperate fully with Budget in these efforts and honor all obligations under the Airport Concession Agreement.