What item in the Budget Disclosure Document relates to honoring National Account agreements and participating in Programs?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | ITEM IN DISCLOSURE DOCUMENT |
|---|---|---|
| w. Non-competition covenants | 1.6 and 11.9 and the Nondisclosure and Noncompetition Agreement of the Budget License Agreement | Item 17 |
| x. Dispute Resolution | 14.9 to 14.13 of the Budget License Agreement XIX of the Intercity Program | Item 17 |
| y. Intercity Rentals | The Intercity Rules and Regulations | Items 1, 6, 8, 16, and 17 |
| z. Personal Guarantee | 12.7 and Exhibit A of the Budget License Agreement were intentionally deleted | Items 1, 7, 15 |
| aa. Assignment of account | 7.7 and 14.5 of the Budget License | |
| and other receivables | Agreement | |
| bb. Lien on equipment and | 7.7 of the Budget License Agreement | |
| property | ||
| cc. Honor National Account agreements and participate in Programs | Art. VI. 9.13, 11.10 and VI of the Budget License Agreement | Items 1, 6, 11, and 12 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Item 11, along with Items 1, 6, and 12, relates to the franchisee's obligation to honor National Account agreements and participate in Programs. This obligation is further detailed in Article VI, sections 9.13, 11.10, and VI of the Budget License Agreement.
This means that as a Budget franchisee, you are contractually required to accept and fulfill rental agreements made through Budget's national accounts and participate in any promotional programs the company initiates. These national accounts are typically large corporations or organizations that have negotiated special rates and terms with Budget for their employees or members.
Participating in these programs and honoring national account agreements is not optional; it's a mandatory part of your franchise agreement. Failure to comply could result in penalties or even termination of your franchise agreement. Therefore, understanding the terms and conditions of these agreements and programs is crucial for the successful operation of a Budget franchise. Prospective franchisees should carefully review these sections of the Budget License Agreement and Disclosure Document to fully understand their obligations.