Is Budget's Nondisclosure and Noncompetition Agreement included in the Budget License Agreement?

According to Budget's 2025 Franchise Disclosure Document, the Nondisclosure and Noncompetition Agreement is included in the Budget License Agreement. Specifically, Item 15 states that beneficial owners and principal officers of the Budget franchise must sign certain documents included in the Budget License Agreement, and this includes Budget's Nondisclosure and Noncompetition Agreement. This agreement is a standard legal document used in franchising to protect the franchisor's confidential information and prevent unfair competition.

This requirement means that if you are a beneficial owner or principal officer of a Budget franchise, you will be personally bound by the terms of the Nondisclosure and Noncompetition Agreement. This typically restricts you from disclosing confidential information about Budget's business operations, and it may also prevent you from engaging in a competing business during the term of your franchise agreement and for a certain period after the agreement expires or is terminated.

Item 17 also references the Nondisclosure and Noncompetition Agreement in the context of non-competition during the term of the franchise and after termination or expiration. During the franchise term, franchisees cannot be involved in other vehicle rental businesses or systems in the United States. After the franchise is terminated or expires, franchisees are restricted from operating a competing business for one year within the licensed territory or within five miles of the licensed territory. These restrictions are detailed in Section 11.9, 12.6, and the Nondisclosure and Noncompetition Agreement.

Prospective franchisees should carefully review the terms of the Nondisclosure and Noncompetition Agreement to understand the full scope of these restrictions and how they might impact their future business activities. It is also important to note that Budget may negotiate provisions in this section for the Budget License Agreements it offers to Budget Licensees, so the specific terms could vary.