If I sign a Budget franchise agreement, am I required to also sign a Confidentiality Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
You may view the Manual before you purchase a Budget Franchise if you sign the Confidentiality Agreement attached to this disclosure document as Exhibit D (the Budget License Agreement, Article III).
Persons who are the beneficial owners and principal officers of your Budget Franchise must sign certain documents included in the Budget License Agreement, including Budget's Nondisclosure and Noncompetition Agreement.
-
- The "Summary" sections of Item 17(v), entitled Choice of forum, in the charts for The Budget License Agreement and Confidentiality Agreement in Item 17(v) are deleted in their entirety.
-
- The "Summary" sections of Item 17(w), entitled Choice of law, in the charts for The Budget License Agreement, Rental System Agreement, and Confidentiality Agreement in Item 17(w) are deleted and replaced with the following:
"Illinois law applies."
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, signing a Confidentiality Agreement is required in certain circumstances. Specifically, if you want to view the Manual before purchasing a Budget franchise, you must sign the Confidentiality Agreement attached as Exhibit D to the FDD.
Additionally, persons who are the beneficial owners and principal officers of your Budget Franchise must sign certain documents included in the Budget License Agreement, including Budget's Nondisclosure and Noncompetition Agreement. This suggests that while a general confidentiality agreement might not be mandatory for all franchisees, individuals in key positions within the franchise will be required to sign a Nondisclosure and Noncompetition Agreement.
Furthermore, the Illinois-specific amendments to Item 17 mention a "Confidentiality Agreement" in the context of choice of forum and choice of law, implying that such an agreement exists and is a standard part of the franchising process, at least in Illinois. Therefore, while not explicitly stated as a blanket requirement for all franchisees, it is highly likely that you will need to sign a Confidentiality Agreement or a similar agreement, especially if you wish to review the operations manual or hold a key position in the franchise.