What paragraph of the Confidentiality Agreement is deleted in its entirety and replaced within this Rider for Budget Rent A Car System, Inc.?

According to Budget's 2025 Franchise Disclosure Document, when a prospective licensee is a resident of Illinois, Paragraph 7 of the Confidentiality Agreement is deleted in its entirety and replaced with specific language within the Rider. The new language states, "This Agreement is intended to be a contract governed and construed under the internal laws of the State of Illinois."

This change ensures that the Confidentiality Agreement, which is signed before the License Agreement, adheres to Illinois law for prospective franchisees in that state. This is particularly important because the Confidentiality Agreement often contains clauses about governing law and jurisdiction, which determine where legal disputes would be resolved.

For a prospective Budget franchisee in Illinois, this means that any disputes arising from the Confidentiality Agreement would be subject to Illinois law, potentially offering more predictable or favorable outcomes depending on the specific legal issues. This adjustment is part of Budget's compliance with state-specific franchise laws, ensuring that franchisees' rights are protected from the outset of their relationship with the company.