factual

What is the name of the rider that is required by the state of Minnesota for Budget Rent A Car System?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

RIDER TO BUDGET RENT A CAR SYSTEM LICENSE AGREEMENT REQUIRED BY THE STATE OF MINNESOTA

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, if a Budget franchise is located in Minnesota, or if any franchise offering or sales activities occurred in Minnesota, a specific rider must be attached to both the License Agreement and the Confidentiality Agreement. This rider is named "RIDER TO BUDGET RENT A CAR SYSTEM LICENSE AGREEMENT REQUIRED BY THE STATE OF MINNESOTA" and "RIDER TO BUDGET RENT A CAR SYSTEM CONFIDENTIALITY AGREEMENT REQUIRED BY THE STATE OF MINNESOTA".

This rider ensures compliance with the Minnesota Franchise Act and its regulations. The provisions of the rider are effective only to the extent that they independently meet the jurisdictional requirements of the Minnesota Franchise Act, without relying solely on the rider itself. This means that the rider's terms are enforceable only if they align with Minnesota's franchise laws.

Additionally, the Minnesota rider modifies certain aspects of the standard License Agreement. Specifically, it stipulates that no statement or acknowledgment signed by the franchisee can waive claims under Minnesota franchise law, including claims of fraud, or disclaim reliance on statements made by Budget or its representatives. This provision takes precedence over any conflicting terms in other documents executed with the franchise agreement, strengthening franchisee protections under Minnesota law.

Furthermore, the rider includes a clause addressing applicable law, ensuring that the franchisee retains the right to submit matters to the jurisdiction of Minnesota courts, as provided by Minnesota Statutes. This prevents the standard agreement's choice of law provisions from overriding the franchisee's right to seek legal recourse within Minnesota.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.