What liability does a Budget licensee retain to the telephone company after the assignment of telephone numbers and listings to Budget upon termination or expiration of the License Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
be necessary to effect the assignment. The telephone company may accept Budget's written direction or this Assignment as conclusive proof of Budget's exclusive rights in and to the Telephone Numbers and Listings upon such termination or expiration of the License Agreement.
If the telephone company that owns the Telephone Numbers and Listings requires that the parties execute the telephone company's assignment forms or documentation to effect this Assignment, Licensee hereby grants Budget the right and power to execute such forms on its behalf. Licensee will also execute such other further assurances as are reasonably required by said telephone company and Budget to carry out the intent of this Assignment.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, upon the termination or expiration of the License Agreement, the licensee is required to transfer all telephone numbers and listings used in the rental business to Budget. The licensee must also inform the telephone company and third-party service providers that they no longer have an interest in these telephone numbers and approve their transfer to Budget or another party designated by Budget.
Budget is authorized to use the License Agreement itself as conclusive proof of Budget's exclusive rights to the telephone numbers and listings. If the telephone company requires additional assignment forms, the licensee grants Budget the right to execute such forms on their behalf. The licensee must also provide any further assurances reasonably required by the telephone company and Budget to complete the assignment.
While the FDD outlines the process for transferring telephone numbers and listings to Budget upon termination or expiration of the License Agreement, it does not explicitly state what liability, if any, a Budget licensee retains to the telephone company after the assignment. A prospective franchisee should seek clarification from Budget regarding any potential ongoing liabilities to the telephone company after the transfer of telephone numbers and listings.