What information must a Budget licensee provide regarding its officers, directors, and managers?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
e (1) General Manager who has completed the instruction furnished by Budget to Budget's satisfaction and who will devote his or her entire time during normal business hours to the management, operation and development of the Rental Business. The General Manager designated by Licensee at the date of execution of this Agreement is set forth in the Summary Pages (Section 5). Licensee will notify Budget of any proposed change in its General Manager. Any replacement General Manager must complete the instruction Budget prescribes to Budget's satisfaction. No person may be employed as the General Manager unless such person will have completed the instruction furnished by Budget to Budget's satisfaction.
- 9.2 Management. Licensee shall notify Budget of the names and addresses of all of Licensee's officers, directors and managers. Licensee shall notify Budget immediately in the event changes in any such positions occur, including providing Budget with organizational documents executed to effect or approve such change, as set forth in Exhibit G. Budget reserves the right to periodically run criminal background checks and credit checks on any of Licensee's officers, directors and managers, including at the time of renewal.
- 9.3 Telephone Numbers/Weblinks.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee must notify Budget of the names and addresses of all of the licensee's officers, directors, and managers. Furthermore, the licensee must notify Budget immediately if there are any changes to these positions. This notification must include organizational documents that effect or approve such change, as outlined in Exhibit G. Budget also retains the right to periodically run criminal background checks and credit checks on any of the licensee's officers, directors, and managers, including at the time of renewal.
In the event of a transfer of the license, the transferring licensee must submit written notice to Budget, along with several documents and information for Budget's review. This information must be certified as true, correct, and complete by the transferee, its shareholders, members, or partners. The required information includes the names, addresses, and phone numbers (both business and personal) of the transferee, its shareholders, members, or partners, and its officers, directors, and operational management personnel related to the Rental Business.
Budget also considers several factors when determining whether to approve a transfer. These include the number and type of prospective shareholders or partners of the transferee and their effect on the management, operation, and profitability of the Rental Business. Budget also considers any competitive business interests and any other Rental Business interests of the transferee, its shareholders, members, partners, and its management team. Finally, Budget considers the litigation and bankruptcy history, for at least the last five years, of the same individuals and entities.