For Budget franchises, what sections are deleted and replaced in the charts for the Budget License Agreement, Rental System Agreement, and Confidentiality Agreement in Item 17(w) regarding choice of law?

According to the 2025 Budget Franchise Disclosure Document, there are specific modifications to the "Summary" sections of Item 17(w), entitled "Choice of law," within the charts for the Budget License Agreement, Rental System Agreement, and Confidentiality Agreement, but only for franchises operating in Illinois. For these Illinois-based franchises, the original "Summary" sections are completely removed and replaced with a simple statement: "Illinois law applies."

This change means that for Budget franchisees in Illinois, any disputes or legal matters related to the franchise agreement will be governed by Illinois state law, regardless of what the standard franchise agreement might otherwise stipulate. This could have significant implications for franchisees, as Illinois law may offer different protections or impose different obligations compared to the laws of other states.

Prospective Budget franchisees in Illinois should carefully consider the implications of being subject to Illinois law, and should seek legal counsel to understand their rights and responsibilities under the franchise agreement as modified by this Illinois-specific provision. Franchisees in other states are not subject to this change.