Can a Budget licensee divert or transfer telephone numbers or weblinks associated with the Rental Business?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ct from all other telephone numbers maintained by Licensee), in all primary general and business telephone directories distributed within the Territory and in such other telephone directories, and in all advertising in which such number or numbers appear, as will be prescribed by Budget in the Standards. All telephone, facsimile and electronic communication lines and other commercial numbers, whether installed by or at the cost of Licensee or not, which are advertised in connection with the Rental Business (including listings in the white and yellow pages and any other telephone, online or other business directories) are held by Licensee solely for the purpose of performing under this Agreement and its related Exhibits. Budget may suffer losses and damages if Licensee diverts or transfers such telephone numbers, facsimile/electronic communication lines, domain names or weblinks (or permits their diversion or transfer) or uses them or permits their use for, or in connection with, any business other than the Rental Business. Licensee agrees that its commitment not to divert or misuse the telephone numbers, facsimile service/electronic communication lines, weblinks or domain names will survive termination of this Agreement for any reason, for the enduring benefit of the Network as a whole.
- 9.4 Insurance. Licensee will maintain such insurance, in such minimum amounts, and with such carriers as approved by Budget in its sole discretion or, as are prescribed in the Standards and in this Paragraph 9.4.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee is prohibited from diverting or transferring telephone numbers, facsimile/electronic communication lines, domain names, or weblinks associated with the Rental Business. Budget explicitly states that it may suffer losses and damages if a licensee engages in such activities or permits them to be used for any business other than the Rental Business. This restriction is designed to protect Budget's brand and network.
This obligation extends beyond the term of the License Agreement. The licensee's commitment not to divert or misuse these communication channels and online assets survives the termination of the agreement for any reason, ensuring the enduring benefit of the Budget network as a whole. Upon termination of the agreement, the licensee must take all necessary steps to transfer all telephone numbers, communication lines, electronic addresses, and domain names used in the Rental Business to Budget or a party designated by Budget.
Budget also requires that licensees maintain at least one separate telephone number and communication line exclusively for the Rental Business, listed and identified as such in directories and advertising. These communication channels, whether installed at the licensee's cost or not, are held solely for performing under the License Agreement. This ensures that customers can easily reach the Budget rental business and that the licensee does not use these assets for other ventures, protecting Budget's interests and customer accessibility.
These stipulations are fairly standard in franchising, as franchisors need to protect their brand identity and customer access. A prospective Budget franchisee should understand that these restrictions are in place to maintain consistency and prevent misuse of the brand's resources, which ultimately benefits the entire franchise network.