What must a Budget franchisee do regarding the Settlement Agreement with the U.S. Department of Justice?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain laws and regulations apply to the car rental industry. Refer to Exhibit B for a general description of those laws. In July 1997, Budget entered into a Settlement Agreement with the U.S. Department of Justice regarding obligations under the Americans with Disabilities Act to persons with disabilities that prevent them from driving, such as blindness or epilepsy. Under the Settlement Agreement, the Predecessor agreed to strongly urge its franchisees to comply with the terms of the Settlement Agreement. A copy of the Announcement setting forth the terms of the Settlement Agreement is contained in Exhibit B. You must also follow all other local, state, and federal laws that apply to you and businesses generally. Budget urges you to investigate these laws in order to understand your potential legal obligations.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget entered into a Settlement Agreement with the U.S. Department of Justice in July 1997 regarding obligations under the Americans with Disabilities Act to persons with disabilities that prevent them from driving. The agreement addresses issues such as blindness or epilepsy. Budget's predecessor agreed to strongly urge its franchisees to comply with the terms of the Settlement Agreement. A copy of the announcement setting forth the terms of the Settlement Agreement is contained in Exhibit B.
This means that as a Budget franchisee, you are strongly urged to comply with the terms outlined in the Settlement Agreement. While the FDD states that Budget urges compliance, it does not explicitly state that compliance is mandatory. The actual requirements of the Settlement Agreement are detailed in Exhibit B, which a prospective franchisee should carefully review to understand the specific obligations.
In addition to the Settlement Agreement, Budget franchisees must also follow all other local, state, and federal laws that apply to businesses generally. Budget emphasizes the importance of investigating these laws to fully understand potential legal obligations. This highlights the franchisee's responsibility to ensure their Budget business complies with all applicable regulations, not just the ADA settlement.