For Budget franchises, what sections are deleted in their entirety from the charts for the Budget License Agreement and Confidentiality Agreement in Item 17(v) regarding choice of forum?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The "Summary" sections of Item 17(v), entitled Choice of forum, in the charts for The Budget License Agreement and Confidentiality Agreement in Item 17(v) are deleted in their entirety.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, for franchisees in Illinois, the "Summary" sections of Item 17(v), entitled Choice of forum, in the charts for The Budget License Agreement and Confidentiality Agreement in Item 17 are deleted in their entirety. This means that the standard provisions regarding where legal disputes must be resolved, as outlined in those agreements, do not apply to Budget franchisees operating in Illinois.
Instead of the standard choice of forum, Illinois law will dictate the appropriate venue for resolving disputes related to the Budget License Agreement and Confidentiality Agreement. This change is likely due to Illinois franchise laws that aim to protect franchisees by ensuring they can litigate within their home state.
This modification provides a benefit to Budget franchisees in Illinois, as they will not be required to travel to a different state to resolve legal disputes with Budget. It's a crucial point for prospective franchisees to understand, especially if they are considering opening a Budget franchise in Illinois, as it can significantly reduce the costs and burdens associated with potential litigation.