Where in the Budget License Agreement can I find information about the lien on equipment and property 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 |
| 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 |
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, information regarding the lien on equipment and property can be found in section 7.7 of the Budget License Agreement. This section likely outlines the circumstances under which Budget might place a lien on a franchisee's equipment and property.
For a prospective franchisee, understanding this section is crucial. Liens can impact a franchisee's ability to sell the business, secure financing, or even operate freely. It is important to know what triggers a lien, the process Budget must follow to impose one, and the franchisee's rights and obligations in such a situation.
It would be prudent for a potential Budget franchisee to carefully review section 7.7 of the Budget License Agreement with a legal advisor. This review should clarify the extent of Budget's rights, the franchisee's protections, and the potential financial implications of such a lien. Understanding these details is essential for making an informed decision about investing in a Budget franchise.