What part of the Budget License Agreement discusses honoring National Account agreements and participating in Programs?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | ITEM IN DISCLOSURE DOCUMENT |
|---|---|---|
| w. Non-competition covenants | 1.6 and 11.9 and the Nondisclosure and Noncompetition Agreement of the Budget License Agreement | Item 17 |
| x. Dispute Resolution | 14.9 to 14.13 of the Budget License Agreement XIX of the Intercity Program | Item 17 |
| y. Intercity Rentals | The Intercity Rules and Regulations | Items 1, 6, 8, 16, and 17 |
| z. Personal Guarantee | 12.7 and Exhibit A of the Budget License Agreement were intentionally deleted | Items 1, 7, 15 |
| aa. Assignment of account | 7.7 and 14.5 of the Budget License | |
| and other receivables | Agreement | |
| bb. Lien on equipment and | 7.7 of the Budget License Agreement | |
| property | ||
| cc. Honor National Account agreements and participate in Programs | Art. VI. 9.13, 11.10 and VI of the Budget License Agreement | Items 1, 6, 11, and 12 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the obligation to honor National Account agreements and participate in Programs is addressed in Article VI, Sections 9.13, 11.10, and Article VI of the Budget License Agreement. This obligation is further referenced in Items 1, 6, 11, and 12 of the disclosure document.
For a prospective Budget franchisee, this means that the franchise agreement legally requires them to accept and uphold the terms of any National Account agreements that Budget has established. They must also actively take part in any programs that Budget implements.
This requirement ensures consistency across all Budget locations and allows Budget to maintain relationships with large corporate clients. It also allows Budget to implement marketing and operational programs across all locations. A prospective franchisee should carefully review these sections of the Budget License Agreement to fully understand the scope of these obligations and how they might affect their business operations.