What happens to the Budget licensee's commitment not to divert or misuse telephone numbers after termination of the agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the licensee's commitment not to divert or misuse telephone numbers, facsimile service/electronic communication lines, weblinks, or domain names will continue even after the termination of the License Agreement. This commitment remains in effect regardless of the reason for termination and is intended to benefit the Budget network as a whole.
Budget emphasizes the importance of these assets by stating that they may suffer losses and damages if a licensee diverts or transfers these communication channels or uses them for any business other than the Rental Business. This highlights the potential financial impact of misusing these assets and the need for strict adherence to the agreement.
Furthermore, upon termination of the agreement, the licensee is required to take all necessary steps to transfer all telephone numbers, facsimile and electronic communication lines, and electronic addresses and domain names used in the Rental Business to Budget or to a party designated by Budget. The licensee must also inform the telephone company and any third-party service providers that they no longer have any interest in these assets and approve their transfer to Budget or its designee. This ensures that Budget maintains control over these communication channels and can continue to operate the Rental Business effectively.