Can a Budget licensee modify the franchise agreement without written consent from Budget?

According to Budget's 2025 Franchise Disclosure Document, the franchise agreement cannot be modified or amended by a licensee without written consent from Budget. Specifically, the document states that any modifications or amendments must be made through a written agreement signed by both parties, meaning both Budget and the licensee. This requirement ensures that all changes to the franchise agreement are formally documented and agreed upon by both parties, preventing unilateral changes by the licensee.

This provision is typical in franchising, as it protects the integrity and uniformity of the Budget franchise system. It prevents licensees from making unauthorized changes that could negatively impact the brand or other franchisees. The FDD also clarifies that no salesperson, representative, or other person has the authority to bind or obligate Budget in any way, except through a written instrument duly executed by the president or any vice president of Budget. This reinforces the need for formal written agreements for any modifications.

For a prospective Budget franchisee, this means that any desired changes to the franchise agreement must be formally proposed and agreed upon in writing by Budget. Licensees should not rely on verbal agreements or representations from anyone other than authorized executives of Budget. This requirement protects both Budget and the franchisee by ensuring that all modifications are clear, documented, and mutually agreed upon.