What happens if a Budget licensee diverts or transfers telephone numbers or weblinks?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ct from all other telephone numbers maintained by Licensee), in all primary general and business telephone directories distributed within the Territory and in such other telephone directories, and in all advertising in which such number or numbers appear, as will be prescribed by Budget in the Standards. All telephone, facsimile and electronic communication lines and other commercial numbers, whether installed by or at the cost of Licensee or not, which are advertised in connection with the Rental Business (including listings in the white and yellow pages and any other telephone, online or other business directories) are held by Licensee solely for the purpose of performing under this Agreement and its related Exhibits. Budget may suffer losses and damages if Licensee diverts or transfers such telephone numbers, facsimile/electronic communication lines, domain names or weblinks (or permits their diversion or transfer) or uses them or permits their use for, or in connection with, any business other than the Rental Business. Licensee agrees that its commitment not to divert or misuse the telephone numbers, facsimile service/electronic communication lines, weblinks or domain names will survive termination of this Agreement for any reason, for the enduring benefit of the Network as a whole.
- 9.4 Insurance. Licensee will maintain such insurance, in such minimum amounts, and with such carriers as approved by Budget in its sole discretion or, as are prescribed in the Standards and in this Paragraph 9.4. Licensee will annually provide a current certificate of insurance to Budget naming Budget and its affiliates as additional insureds as prescribed by Budget in the Standards, and the insurer must waive any subrogation rights it may have against Budget. Budget may periodically increase the amounts of insurance carried by Licensee and require different or additional kinds of insurance to reflect inflation, changes in standards of liability, higher damages, Licensees specific claims history or other relevant circumstances. Budget reserves the right to receive an administrative fee or commission for its endorsement of certain insurance carriers and/or programs for the sale of supplemental liability and related insurance to rental customers.
- 9.5 Loss Damage Waiver. Licensee will make readily available to each customer the option to effect the waiver of any claim against such customer for collision or certain other damage to the rented Vehicle, notwithstanding any collision or comprehensive insurance deductible amount, subject to such conditions and limitations as are prescribed in the Standards and/or as are contained in the Standard Rental Agreement and the requirements of applicable law. Licensee may charge a reasonable, additional fee for such waiver.
- 9.6 Standard Rental Agreement. In connection with all rentals of Vehicles, Licensee will use the then-current, "Standard Rental Agreement" designated by Budget for use in the applicable jurisdiction in which the Territory is located, or such other rental agreement that has been approved by Budget in writing.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget may incur losses and damages if a licensee redirects or transfers telephone numbers, communication lines, domain names, or weblinks, or allows them to be used for any business other than the rental business. The licensee's commitment to not divert or misuse these communication channels will continue even after the termination of the License Agreement, for the benefit of the entire Budget network. Upon termination of the agreement, the licensee must transfer all telephone numbers, communication lines, electronic addresses, and domain names used in the rental business to Budget or a party designated by Budget. The licensee must also inform the telephone company and third-party service providers that they no longer have interest in these communication channels and approve their transfer to Budget or its designee. To ensure these obligations are met, the licensee grants Budget power of attorney to transfer telephone numbers, communication lines, electronic addresses, and domain names following the termination of the agreement for any reason. Budget's exercise of this power of attorney serves as conclusive evidence of its right to do so.
Budget also requires the licensee to maintain at least one separate telephone number and communication line exclusively for the rental business, listed distinctly in all directories and advertising. All telephone and communication lines advertised in connection with the rental business are held by the licensee solely for the purpose of fulfilling the License Agreement. If the telephone company requires specific assignment forms or documentation, the licensee grants Budget the right to execute such forms on their behalf and to execute any further assurances required by the telephone company and Budget to carry out the assignment.
These measures ensure that Budget maintains control over its brand identity and customer communication channels, even in the event of a franchise termination. This is a fairly standard practice in franchising, as consistent branding and customer access are crucial for maintaining a strong franchise system. Prospective franchisees should understand that these requirements are in place to protect the integrity of the Budget brand and network.