Who owns the Wizard System, including all systems, software, methodology, and documentation, used in the Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Notwithstanding any other provision of this Agreement, Wizard, including all systems, software, methodology, and documentation thereof and all copyrights and other proprietary rights thereof or therein and the name "Wizard System" are owned by ABCR, and Licensee will use its best efforts to maintain all information relating to the System, such methodology and documentation in strict confidence by Licensee and its employees and agents, notwithstanding any completion or termination of this Agreement. Nothing herein will preclude or prevent Licensee from using such information as is necessary to conduct its business so as fully to realize the benefits of the System, or from disclosing such information in good faith to the extent necessary to obtain assistance from third parties that are engaged by Licensee or ABCR to assist Licensee in acquiring, using, maintaining or repairing Licensee's Equipment and that are advised of the proprietary and confidential nature of such information and have signed a non-disclosure agreement with respect thereto.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, ABCR owns the Wizard System. This ownership extends to all systems, software, methodology, and documentation related to the Wizard System. The FDD emphasizes that Budget franchisees must exert their best efforts to maintain the confidentiality of all information pertaining to the Wizard System, including its methodology and documentation. This obligation remains in effect regardless of the agreement's completion or termination.
Despite the confidentiality requirement, Budget franchisees are permitted to use the information necessary to conduct their business and fully realize the benefits of the Wizard System. They can also disclose information in good faith to third parties engaged by either the franchisee or ABCR to assist in acquiring, using, maintaining, or repairing the franchisee's equipment. However, these third parties must be advised of the proprietary and confidential nature of the information and must sign a non-disclosure agreement.
This arrangement ensures that Budget franchisees have access to the Wizard System for their operational needs while protecting ABCR's intellectual property rights. The confidentiality obligations and permitted disclosures strike a balance between enabling franchisees to run their businesses effectively and safeguarding the Wizard System's proprietary information.