Does the Budget order apply to any respondent not named as a defendant in a complaint?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
This order will terminate on January 2, 2028, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided; however, that the filing of such a complaint will not affect the duration of:
- B. This order's application to any Respondent that is not named as a defendant in such complaint;
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the order issued by the Federal Trade Commission (FTC) remains in effect for any respondent not specifically named as a defendant in a complaint. This means that even if a complaint is filed against Budget, the terms of the existing order continue to apply to any related entities or individuals who are not named in that specific complaint.
This provision ensures that the obligations and restrictions outlined in the order are not circumvented simply by filing a complaint against only one party involved. It maintains the order's effectiveness across the entire Budget system, regardless of whether each individual or entity is directly named in a new legal action.
For a prospective Budget franchisee, this clause implies that even if a complaint is filed against Budget, the franchisee must still comply with the terms of the order unless they are specifically named as a defendant in the complaint. This could include adhering to certain business practices, providing specific disclosures, or refraining from certain actions. Franchisees should familiarize themselves with the details of any existing orders and ensure they understand their obligations, even if they are not directly involved in a legal dispute.
This condition remains in effect unless the complaint is dismissed, or a court rules that the respondent did not violate the order, and these outcomes are not appealed or are upheld on appeal. In such cases, the order would terminate as if the complaint had never been filed, with the exception that the order remains in effect during the period when an appeal is possible or pending.