Must I notify Budget of any apparent infringement of Budget's copyrighted works?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify Budget of any actual or apparent infringement of, or challenge to, any of the copyrighted works, or any person's claim of any rights in the copyrighted works. Budget may take any action (or no action) in response to these matters and control exclusively any settlement, litigation, arbitration, administrative, or other proceeding arising out of any alleged infringement, challenge, or claim or otherwise relating to the copyrighted works. Budget has no obligation to participate in your defense or indemnify you for damages or expenses you incur if you are a party to any proceeding involving the copyrighted work. If it becomes advisable at any time in Budget's judgment for you to modify or discontinue using any of the copyrighted works and/or for you to use one or more additional or substitute copyrighted or copyrightable items, you must comply with Budget's directions.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 64–65)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, as a franchisee, you are required to immediately notify Budget of any actual or apparent infringement of, or challenges to, any of Budget's copyrighted works. This also includes informing Budget about any claims made by others regarding rights to these copyrighted works. This obligation is in place to protect Budget's intellectual property rights.
Budget retains the exclusive right to decide on the appropriate course of action, including whether or not to pursue any legal proceedings, settlements, or other administrative actions related to the alleged infringement, challenge, or claim. Budget is not obligated to participate in your defense or cover any damages or expenses if you become involved in a legal proceeding concerning the copyrighted work.
Furthermore, Budget has the right to direct you to modify or discontinue the use of any copyrighted materials, or to use additional or substitute copyrighted items, if they deem it necessary. This ensures that Budget maintains control over its copyrighted works and can respond effectively to any potential infringements or challenges. This requirement is designed to protect Budget's brand and intellectual property, but it also means franchisees must be vigilant in monitoring for potential infringements and responsive to Budget's directives.