Where in the Budget License Agreement are defaults that cannot be cured defined as 'cause' for termination of the Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of the Budget License Agreement | |
|---|---|---|
| h. | "Cause" defined— defaults which cannot be cured | 11.4 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 66–70)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, defaults that cannot be cured, which constitute 'cause' for termination of the Budget franchise, are defined in Section 11.4 of the Budget License Agreement. This is important for prospective franchisees to note, as these defaults can lead to immediate termination of the franchise agreement without an opportunity to rectify the situation.
Understanding the specific defaults listed in Section 11.4 is crucial. Franchise agreements typically outline various scenarios that can lead to termination, some of which may be curable, allowing the franchisee a chance to correct the issue. However, non-curable defaults are more severe and can result in the immediate loss of the franchise.
Prospective Budget franchisees should carefully review Section 11.4 of the Budget License Agreement with legal counsel to fully understand what constitutes a non-curable default. This will help them assess the risks associated with the franchise and ensure they can comply with the terms of the agreement to avoid such defaults. Knowing these terms upfront can help a franchisee avoid actions that would lead to termination of their Budget franchise.