How much notice will Budget give a licensee to cure a failure to pay sums owed?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Any notice of default by Budget will specify the time period (if any) within which such failure or failures must be cured by Licensee, which Licensee agrees will be fifteen (15) days from the date of delivery of notice to Licensee in the case of all failures by Licensee to pay any sums owed to Budget and thirty (30) days from delivery in the case of failure of Licensee to adhere to any other provision of this Agreement or the Standards (except as otherwise set forth in Paragraph 11.4).
If Licensee fails to cure any such failure within the prescribed time period, this Agreement will terminate without further notice or action by Budget and upon expiration of the prescribed time period.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, if a licensee fails to pay any sums owed to Budget, Budget will provide fifteen (15) days from the date of delivery of notice to cure the failure. If the licensee fails to cure the failure within the 15-day period, the License Agreement will terminate without further notice or action by Budget.
This means that if a Budget franchisee is late on payments, they will receive a formal notice from Budget. The franchisee then has 15 days to correct the payment issue. This relatively short cure period underscores the importance of maintaining timely payments to Budget as a franchisee.
It is important to note that the cure period differs for other breaches of the License Agreement. For failures to adhere to any other provision of the Agreement or the Standards, Budget provides thirty (30) days from delivery of notice to cure the failure, except as otherwise set forth in Paragraph 11.4, which discusses termination by Budget without prior notice.