Who must the Budget licensee name as additional insureds on their insurance policy?

According to Budget's 2025 Franchise Disclosure Document, Budget licensees are required to maintain insurance policies, and they must name Budget and its affiliates as additional insureds. The specific minimum amounts of insurance, approved carriers, and other requirements are determined by Budget at its sole discretion or as prescribed in the Standards. Furthermore, the insurance provider must waive any subrogation rights against Budget.

This requirement means that if a claim arises related to the Budget licensee's operations, Budget and its affiliates are protected under the licensee's insurance policy. This is a common practice in franchising, as it shields the franchisor from potential liabilities arising from the franchisee's business activities.

Budget also retains the right to periodically increase the required insurance amounts or mandate different or additional types of insurance to account for factors like inflation, changes in liability standards, increased damages, the licensee's claims history, or other relevant circumstances. This allows Budget to ensure adequate coverage is maintained over time.

Prospective franchisees should carefully review the insurance requirements outlined in the Standards and discuss these obligations with an insurance professional to ensure they can meet Budget's stipulations and maintain adequate coverage for their business.