What must a Budget franchisee do if they learn about an infringement of Budget's Proprietary Marks?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify Budget immediately when you learn about an infringement of or challenge to your use of Budget's Proprietary Marks or of any person's claim of any rights in any of Budget's Proprietary Marks or any similar name or mark. Budget will take the action it thinks appropriate and has the exclusive right to control any litigation or administrative proceeding arising out of the infringement, challenge, or claim or otherwise relating to any of Budget's Proprietary Marks. Budget is not required to indemnify or defend you against claims from your use of Budget's Proprietary Marks, or to protect your right to use these marks. You must modify or discontinue the use of any of Budget's Proprietary Marks at Budget's direction. You will be granted the right to use the modified marks in accordance with the terms of the License Agreement applicable to the current proprietary marks. If this happens, we will reimburse you for your tangible costs of compliance (for example, changing signs). You must not directly or indirectly contest our right to our trademarks, trade secrets or business techniques that are part of a Budget franchise.
Source: Item 13 — TRADEMARKS (FDD pages 63–64)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a franchisee must immediately notify Budget if they become aware of any infringement or challenges to the use of Budget's Proprietary Marks. This also applies to any claims of rights by another person to Budget's Proprietary Marks or any similar name or mark. This requirement ensures that Budget is promptly informed of any potential threats to its brand and intellectual property.
Budget retains the exclusive right to decide on the appropriate action and to control any litigation or administrative proceedings related to the infringement, challenge, or claim. This means that franchisees are not permitted to independently pursue legal action to protect the marks. Budget is not obligated to defend or indemnify the franchisee against claims arising from the use of Budget's Proprietary Marks or to protect the franchisee's right to use these marks.
Furthermore, Budget has the authority to direct a franchisee to modify or discontinue the use of any of Budget's Proprietary Marks. If this occurs, Budget will grant the franchisee the right to use the modified marks under the terms of the applicable License Agreement. Budget will also reimburse the franchisee for tangible costs incurred in complying with these changes, such as the cost of changing signs. Franchisees are prohibited from directly or indirectly contesting Budget's rights to its trademarks, trade secrets, or business techniques that are part of the Budget franchise system.