Is a Budget licensee allowed to register trademarks containing the term 'Budget'?

According to Budget's 2025 Franchise Disclosure Document, a licensee is explicitly prohibited from registering any trademarks or service marks that include the term "Budget." This restriction applies both during the term of the License Agreement and after its termination, and it extends to the United States as well as any other location worldwide.

This restriction ensures that Budget maintains exclusive control over its brand and trademarks. By preventing licensees from registering similar marks, Budget protects its brand identity and prevents potential confusion among consumers. This is a standard practice in franchising, as franchisors need to ensure consistent branding across all franchise locations.

Furthermore, the agreement specifies that licensees cannot use the Budget marks in any modified form or incorporate them into their corporate name. They are also prohibited from using the marks in connection with any unauthorized products or services. This comprehensive approach aims to prevent any unauthorized use of the Budget brand and maintain its integrity.

In practical terms, a prospective Budget franchisee must understand that they cannot build any independent brand equity around the "Budget" name. All marketing and branding efforts must adhere strictly to Budget's guidelines, and any unauthorized use of the trademarks could lead to legal repercussions.