For Budget franchisees in North Dakota, when is the payment of all initial fees due?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Franchise Agreement, and in particular Sections 7.1 and 7.2, payment of all initial fees is deferred until Franchisor has satisfied its pre-opening obligations and Franchisee's Franchised Business opens to the public.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget defers the payment of all initial fees for franchisees in North Dakota. Specifically, the payment is not due until Budget has satisfied its pre-opening obligations to the franchisee. Furthermore, the payment is deferred until the franchisee's Budget business is open to the public. This amendment to the standard franchise agreement is designed to protect franchisees in North Dakota, as specified in the FDD.