In the Budget franchise agreement, what term is used to refer to the franchisee?

According to Budget's 2025 Franchise Disclosure Document, the term used to refer to the franchisee in the context of the franchise agreement is "Licensee". This is explicitly stated in multiple sections of the document, particularly when referencing the "License Agreement" and the rights and obligations of both Budget and the franchisee.

This designation is important because it establishes the legal relationship between Budget and the franchisee. As a licensee, the franchisee is granted the right to use Budget's trademarks, systems, and business model to operate a rental business. However, this right is subject to the terms and conditions outlined in the License Agreement, which also defines the scope of the franchisee's authority and the limitations imposed by Budget.

Prospective franchisees should pay close attention to how the term "Licensee" is used throughout the Franchise Disclosure Document and the License Agreement. Understanding the rights and responsibilities associated with this designation is crucial for making informed decisions about investing in a Budget franchise. The document also clarifies the meaning of terms like "beneficial owners" in relation to the Licensee, which is relevant for ownership structures.