Is a Budget licensee allowed to identify themselves as being Budget, or a subsidiary, division, partner, joint venturer, agent or employee of Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.6 Licensee Identification. Licensee agrees that it will at all times identify itself only as an Budget licensee; that it will not identify itself as being Budget, or a subsidiary, division, partner, joint venturer, agent or employee of Budget, or as being associated with Budget in any manner other than as an Budget licensee; and that it will in all advertising and promotional materials (including Licensee's stationery, business cards, telephone listings, websites, advertising (whether print, radio, web or television), purchase orders and rentals agreements), use the word "Budget" and the Marks only in obvious conjunction with the words "an Independent Budget System Licensee" or with such other words and with such other phrases as may be prescribed in the Standards.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee must identify themselves only as a Budget licensee. They are prohibited from presenting themselves as Budget itself, or as a subsidiary, division, partner, joint venturer, agent, or employee of Budget. The licensee can only represent themselves as an independent licensee of the Budget system.
To ensure proper representation, all advertising and promotional materials, including stationery, business cards, telephone listings, websites, and advertisements (print, radio, web, or television), must clearly state that the licensee is "an Independent Budget System Licensee." The use of the Budget name and marks must always be in conjunction with this identifier or other phrases as prescribed in Budget's standards.
This requirement ensures that customers understand the licensee is an independent entity and not directly controlled by Budget. This distinction is important for managing liability and customer expectations. Franchisees should adhere strictly to these guidelines to avoid any potential breach of the license agreement.