How is the Budget Guarantee interpreted and construed, according to the agreement?

According to Budget's 2025 Franchise Disclosure Document, the Guarantee provided by the guarantors is interpreted and construed in accordance with the applicable law and dispute resolution provisions outlined in Article XIV of the franchise agreement. This means that any legal disputes or questions regarding the Guarantee will be resolved based on the laws governing the agreement and the specific procedures detailed in Article XIV. Furthermore, Article XIV is incorporated by reference into the Guarantee, and the term "Licensee" within Article XIV is understood to refer to the "Guarantor" when applying those provisions to the Guarantee.

This clause ensures that the Guarantee is legally sound and enforceable, providing clarity on how disputes related to the Guarantee will be handled. By referencing Article XIV, Budget establishes a clear framework for resolving any conflicts that may arise, which is crucial for protecting the interests of both Budget and the guarantor. This also means that the guarantor is subject to the same dispute resolution process as the franchisee (Licensee) under the franchise agreement.

For a prospective Budget franchisee, this means that if a guarantor is involved in their franchise agreement, the guarantor's obligations and rights will be interpreted under the same legal framework as the franchisee's. It is important for both the franchisee and the guarantor to understand Article XIV of the franchise agreement, as it dictates how any disputes related to the Guarantee will be resolved. This provides a level of legal certainty and predictability, which can be beneficial for all parties involved.