Which items in the Budget Disclosure Document relate to the lien on equipment and property for a Budget franchise?

According to Budget's 2025 Franchise Disclosure Document, Item 11 references the section in the Budget License Agreement that discusses the lien on equipment and property. Specifically, paragraph 7.7 of the Budget License Agreement is related to the lien on equipment and property.

This indicates that the franchise agreement contains provisions that allow Budget to place a lien on the franchisee's equipment and property under certain circumstances. A lien gives Budget a legal claim against these assets, which could allow Budget to seize and sell the assets to recover debts owed by the franchisee.

Prospective franchisees should carefully review paragraph 7.7 of the Budget License Agreement to fully understand the conditions under which Budget can place a lien on their equipment and property. This includes understanding what constitutes a default, the process Budget must follow to enforce the lien, and the franchisee's rights and obligations in such a situation. Understanding these conditions is crucial for assessing the financial risks associated with the franchise.