Which items in the Budget Disclosure Document relate to the Personal Guarantee for a Budget franchise?
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 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to the 2025 Budget Franchise Disclosure Document, Item 11 references the personal guarantee in the context of obligations. Specifically, it notes that the section related to the personal guarantee was intentionally deleted from the Budget License Agreement.
This indicates that while a personal guarantee might typically be expected, the specific terms and conditions that would normally be found in Section 12.7 and Exhibit A of the Budget License Agreement are not present. Instead, Item 11 points to Items 1, 7, and 15 of the disclosure document as potentially relevant to understanding the obligations typically associated with a personal guarantee.
Prospective Budget franchisees should carefully review Items 1, 7, and 15 to understand the nature of any financial commitments or security they may be required to provide. It is crucial to clarify with Budget the exact nature of the personal guarantee, if any, and what conditions would trigger its enforcement, as the standard sections in the agreement have been intentionally removed.