Which items in the Budget Disclosure Document relate to honoring National Account agreements and participating in Programs for Budget?
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 references the franchisee's obligation to honor National Account agreements and participate in Programs. Specifically, it notes that Article VI, sections 9.13, 11.10, and VI of the Budget License Agreement, relate to Items 1, 6, 11, and 12 of the disclosure document.
This means that as a Budget franchisee, you are contractually obligated to honor any existing National Account agreements that Budget has in place. You must also participate in any programs that Budget implements for its franchisees. These obligations are detailed in the Budget License Agreement and further explained in Items 1, 6, 11, and 12 of the FDD.
It is important for a prospective franchisee to carefully review these sections of the Budget License Agreement and the corresponding items in the FDD to fully understand the scope of these obligations. This includes understanding the terms of the National Account agreements, the requirements for participating in the programs, and any associated costs or responsibilities. Understanding these obligations is crucial for assessing the potential profitability and operational requirements of a Budget franchise.