How much advance notice will Budget provide to allow compliance with the renewal provisions?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget agrees to provide Licensee with notice of the approaching expiration of any term and the documentation referenced above sufficiently in advance of such expiration date for Licensee to comply with the renewal provisions of this Paragraph 11.1.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget will provide the Licensee with sufficient notice of the approaching expiration of any term, along with the necessary documentation, to allow the Licensee to comply with the renewal provisions.
To renew the License Agreement for additional five-year terms, the Licensee must meet certain conditions at least thirty (30) days before the current term expires. These conditions include not being in default of the agreement, maintaining the same beneficial owners, signing the then-current form of the License Agreement, upgrading the Rental Business to meet current System Standards, and signing a general release of claims against Budget.
If the Licensee fails to meet these conditions within the specified timeframe, the term will expire on the established Expiration Date. The specific amount of advance notice Budget will provide is not explicitly defined but is intended to be "sufficiently in advance" to allow compliance. Franchisees should clarify the typical length of this notification period during their due diligence.