What happens to the Addendum if a Budget licensee's Rental System Agreement is terminated?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) This Addendum will become effective on the date of execution and will be coterminous with Licensee's Rental System Agreement. In the event Licensee's Rental System Agreement is terminated, then this Addendum will terminate as provided in paragraph (c) below. In the event this Addendum is terminated, such termination will have no impact on the effectiveness of Licensee's Rental System Agreement.
- (b) This Addendum may be terminated as follows:
- (i) Either party may terminate this Addendum with or without cause by providing the other party with ninety (90) days prior written notice.
EXHIBIT I BUDGET FDD 571139240.7 I-35
- (c) In the event Licensee's Rental System Agreement is terminated by ABCR or Licensee, or their respective successors and assigns, or by operation of law, then this Addendum will immediately terminate on the date of termination of Licensee's Rental System Agreement, without any notice to Licensee.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Addendum concerning specialized computer services through the Wizard System is coterminous with the Rental System Agreement. This means that the Addendum's lifespan is directly tied to the Rental System Agreement.
In the event that the Rental System Agreement is terminated, whether by Budget, the licensee, or by operation of law, the Addendum will immediately terminate as well. This termination occurs automatically on the date the Rental System Agreement ends, without any need for additional notice to the licensee.
This provision ensures that the services provided under the Addendum, which are related to the Rental System Agreement, cease when the primary agreement is no longer in effect. However, the termination of the Addendum does not impact the effectiveness of the Rental System Agreement if the Addendum is terminated for other reasons.