What is the name of the agreement that the Rider modifies for Budget franchisees in Illinois?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
e extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 which provides that "Any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this Act or any other law of this State is void. This Section shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of this Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code" or Illinois Regulations at Section 200.609."
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- There is extensive litigation involving Budget disclosed in Item 3 of the disclosure document. Make certain to review Item 3 in the disclosure document, along with the document attached as Exhibit B, Laws & Regulations Concerning the Car Rental Industry and the Announcement of the Department of Justice – Settlement Agreement.
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- Budget expected that YOU will finance 100% of your vehicle fleet. YOU must provide security for any loan you obtain and personally guarantee any financing. This Guarantee will place your personal assets (perhaps including your house) at risk if your franchise fails.
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- Item 6 in the disclosure document contains 7 plus pages of "Additional Fees" that YOU MUST PAY throughout the term of the franchise.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this Rider on the day and year first above written.
BUDGET RENT A CAR SYSTEM, INC.
| By: Print/Type Name: Its: | ||
|---|---|---|
| ATTEST: | ||
| By: | ||
| Print/Type Name: | ||
| Its: | LICENSEE: By: Print/Type Name: Its: |
RIDER TO BUDGET RENT A CAR SYSTEM RENTAL SYSTEM AGREEMENT REQUIRED BY THE STATE OF ILLINOIS
| This Rider is made and entered into as of the day of , 20 by |
|---|
| and between Avis Budget Car Rental, LLC. (hereinafter referred to as "Avis Budget Car |
| Rental") and d/b/a Budget Rent A Car of |
| ("Licensee"). |
| 1. |
| Background. Avis Budget Car Rental and Licensee are parties to that certain |
| Rental |
| System |
| Agreement |
| dated |
| , |
| 20 |
| (the |
| "Rental |
| System |
| Agreement") that has been executed concurrently with the execution of this Rider. This Rider is |
| annexed to and forms part of the Rental System Agreement. This Rider is being executed because |
| (a) Licensee is a resident of the State of Illinois, and/or (b) the Budget Franchise that Licensee will |
| operate under the License Agreement with Budget Rent a Car System, Inc. (pursuant to which the |
| parties are signing the Rental System Agreement) will be located within the State of Illinois and |
| the offering or sales activity with respect to that License Agreement occurred or will occur in |
| the State of Illinois. Each provision of this Rider shall be effective only to the extent, with respect |
| to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act are |
| met independently without reference to this Rider. |
| 2. |
| Applicable Law. Section XII, Paragraph 5(a) of the Rental System Agreement is |
| deleted in its entirety and the following is substituted in its place: |
| "This Agreement will be governed by and construed under and in accordance |
| with the laws of the State of Illinois without giving effect to its conflicts rules." |
[The remainder of this page is intentionally left blank.]
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals on the date written below.
AVIS BUDGET CAR RENTAL, LLC. By: Its: Date: __________________________________ Print or Type Licensee's Corporate Name: d/b/a BUDGET RENT A CAR OF By: Its: Print or Type Licensee's Corporate Name: Date: ON BEHALF OF THE FOLLOWING RAC LOCATIONS: (Street, Address, City, State) 1. _________________________________________________________________________ 2. _________________________________________________________________________ 3. _________________________________________________________________________ 4. _________________________________________________________________________ 5. _________________________________________________________________________ 6. _________________________________________________________________________ 7. _________________________________________________________________________
| Mailing Address for Notice to Licensee.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, for franchisees in Illinois, the Rider modifies two agreements: the License Agreement and the Rental System Agreement. The Rider is attached to and becomes part of both the License Agreement and the Rental System Agreement. This is because the franchisee is an Illinois resident, or the Budget franchise will operate in Illinois, and the offering or sales activity related to the License Agreement occurred or will occur in Illinois.
Several specific modifications are made to the License Agreement for Illinois franchisees. These include deferring initial fee payments until Budget has met its initial obligations and the franchisee has commenced business. Additionally, certain sections regarding the choice of forum and choice of law are deleted and replaced with stipulations that Illinois law applies. The agreement also addresses provisions that might conflict with the Illinois Franchise Disclosure Act, ensuring compliance with Illinois law.
For the Rental System Agreement, the Rider modifies the choice of law provision, specifying that the agreement will be governed by Illinois law, without regard to its conflict of laws rules. These modifications are crucial for ensuring that Budget's franchise agreements comply with Illinois state law, providing additional protections and specific terms for franchisees operating in Illinois.