What must a Budget Licensee execute as part of the transfer requirements?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither this Agreement, the beneficial ownership of Licensee or the Rental Business (or any material assets relating to the Rental Business), or any licenses, concession agreements and/or permits which are required by, or related to, the Rental Business, may be voluntarily, involuntarily, directly or indirectly sold, assigned or otherwise transferred by Licensee (including by will, declaration of or transfer in trust or the laws of intestate succession or by operation of law through a divorce or other legal proceeding), without the prior written consent of Budget, which will not be unreasonably withheld in accordance with this Agreement and the transfer requirements prescribed by Budget from time to time, including payment of a transfer fee (see the "Transfer Requirements" contained in Exhibit F) and Licensee's execution of a general release of claims in a form satisfactory to Budget, except that such general release will exclude then- existing litigation between Licensee and Budget or the Related Entities and then-existing claims of Licensee against Budget or the Related Entities in the ordinary course of business under this Agreement or any other agreement between such parties, which litigation and claims will be identified in such release.
Any such attempted or purported sale, assignment or transfer contrary to the terms and conditions of this Agreement or the Transfer Requirements will constitute a breach hereof and be void.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a transferring licensee must execute a general release of claims in a form satisfactory to Budget, with specific exceptions for existing litigation and claims. Additionally, the transferring licensee must comply with the terms outlined in Budget's Conditional Consent Letter.
Specifically, the general release excludes then-existing litigation between the licensee and Budget or related entities, as well as then-existing claims of the licensee against Budget or related entities in the ordinary course of business under the License Agreement or any other agreement between the parties. These exclusions must be clearly identified in the release.
Furthermore, the transferring licensee is required to adhere to all terms specified in Budget's Conditional Consent Letter, ensuring a smooth and compliant transfer process. This encompasses fulfilling all obligations and conditions set forth by Budget to facilitate the transfer of the license.