For what limited purposes does the Budget franchise agreement grant Budget power of attorney?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5 Power of Attorney.
Licensee, in order to secure the performance of Licensee's obligations under this Agreement, hereby irrevocably appoints Budget as its attorney for the limited purposes of executing, signing, perfecting, doing and (if required) registering every such further assurance, document, act or thing as is required to (a) cause discontinuation of Licensee's use of the Marks (or any other related or similar name or use hereunder) and (b) transfer to Budget or its designee, all telephone numbers, facsimile/electronic communication lines, electronic addresses and domain names used by it in the conduct of the Rental Business and airport licenses, concession agreements, leases and permits as specified in Paragraph 8.2, following the termination of this Agreement for any reason.
The exercise by Budget of such power will be conclusive evidence of its right to exercise the same.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the franchise agreement grants Budget a limited power of attorney to ensure the franchisee fulfills their obligations. This power of attorney is specifically for use after the termination of the franchise agreement, regardless of the reason for termination.
Budget can exercise this power of attorney to discontinue the franchisee's use of Budget's trademarks, names, or any related usage. Additionally, Budget can transfer all telephone numbers, communication lines (including electronic), electronic addresses, and domain names used by the franchisee in conducting the rental business. This also extends to transferring airport licenses, concession agreements, leases, and permits as specified in Paragraph 8.2 of the agreement.
The FDD states that Budget's exercise of this power of attorney serves as conclusive evidence of their right to do so. This provision ensures that Budget can promptly and effectively take control of these assets and prevent any unauthorized use of their brand or resources after the franchise agreement ends. This is a fairly standard clause in franchise agreements to protect the brand and ensure a smooth transition after termination.