Does the Budget licensee's commitment not to divert or misuse telephone numbers survive termination of the agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the licensee's commitment not to divert or misuse telephone numbers, facsimile service/electronic communication lines, weblinks, or domain names does indeed survive the termination of the License Agreement. This commitment remains in effect regardless of the reason for termination and is intended to benefit the Budget network as a whole.
This provision ensures that upon termination, the licensee cannot use the phone numbers or online presence associated with the Budget rental business for any other venture. This prevents confusion in the marketplace and protects Budget's brand identity. The licensee explicitly agrees to this condition, acknowledging its importance for the overall network.
For a prospective Budget franchisee, this means that after the franchise agreement ends, they cannot repurpose the Budget phone numbers or website for a competing business or any other purpose. This obligation continues indefinitely, ensuring that these assets remain with Budget or are transferred as Budget directs. This is a significant restriction that franchisees should carefully consider, as it limits their options for using these business resources after the franchise term concludes.