What information regarding ownership must a Budget licensee furnish to Budget upon execution of the agreement?

According to Budget's 2025 Franchise Disclosure Document, a licensee must provide Budget with a current list of all owners of record and all beneficial owners of any class of voting securities or securities convertible into voting securities upon execution of the License Agreement. This list must also be updated within ten days of any change and at any other reasonable times upon Budget's request.

This requirement allows Budget to maintain an accurate record of the ownership structure of its franchisees. This is a fairly standard practice in franchising, as franchisors need to know who controls and benefits from the franchise operations. This information is crucial for ensuring compliance with the franchise agreement and for making informed decisions regarding the franchise network.

For a prospective Budget franchisee, this means being prepared to disclose detailed information about the ownership of the business. It is important to maintain accurate records of ownership and to promptly notify Budget of any changes. Failure to comply with this requirement could potentially lead to a breach of the franchise agreement.