What is the primary goal of the Budget manual according to Item 23?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, PROSPECTIVE LICENSEE desires to evaluate the purchase of a license from BUDGET on the terms and conditions of BUDGET'S License Agreement; and
WHEREAS, in connection with this evaluation, PROSPECTIVE LICENSEE desires to review Budget's Standard Operating Manual, which may consist of several component parts ("Operating Manual"), which Operating Manual contains, and is being maintained as, confidential information and trade secrets of BUDGET; and
WHEREAS, BUDGET will permit inspection of its Operating Manual prior to the execution of a License Agreement only on the terms and conditions of this Confidentiality Agreement;
NOW, THEREFORE, in consideration of being given access to the Operating Manuals, PROSPECTIVE LICENSEE hereby agrees as follows:
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- All information contained in the Operating Manual (the "Confidential Information") shall be used by PROSPECTIVE LICENSEE solely for the purpose of evaluating whether or not to enter into a License Agreement with BUDGET, and for no other purpose.
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- PROSPECTIVE LICENSEE shall not disclose the Confidential Information to any person or entity other than Permitted Parties, as defined below.
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- Confidential Information does not include any item of information, which is either: (a) known to PROSPECTIVE LICENSEE prior to its receipt of such information from BUDGET; (b) known to the public prior to PROSPECTIVE LICENSEE'S receipt of such information from BUDGET; (c) after such receipt, becomes available to the public generally other than by contravention of this Agreement, any Permitted Party's Confidentiality Agreement, or any other duty to or agreement with BUDGET; or (d) is obtained by PROSPECTIVE LICENSEE from a source with the independent right to disclose it.
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- Upon completion of the evaluation process, PROSPECTIVE LICENSEE shall return to BUDGET all copies of the Operating Manual and all other tangible embodiments containing any Confidential Information, including any notes or analyses made by PROSPECTIVE LICENSEE or any Permitted Party.
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- A breach of any provision of this Agreement will cause BUDGET irreparable injury. BUDGET will be entitled to injunctive relief without bond to enjoin any actual or threatened conduct in violation of this Agreement. If BUDGET is successful in obtaining enforcement of this Agreement, BUDGET shall also be entitled to recover from PROSPECTIVE LICENSEE any and all attorney's fees, court costs and other expenses incurred by BUDGET in connection with such enforcement.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Budget manual contains confidential information and trade secrets that are maintained by Budget. Prospective licensees are given the opportunity to review the manual to evaluate a license purchase from Budget. However, this access is granted only under the condition that the information is used solely for assessing the license agreement and for no other purpose.
The FDD states that prospective licensees must not disclose the confidential information to any unauthorized parties. The agreement outlines specific exceptions, such as information already known to the licensee or in the public domain. Upon completing the evaluation, the prospective licensee is obligated to return all copies of the operating manual and any related materials to Budget.
Budget emphasizes the importance of protecting its trade secrets and confidential information, asserting that any breach of the confidentiality agreement will cause irreparable injury. Budget is entitled to seek injunctive relief without bond to prevent any conduct violating the agreement. Furthermore, Budget has the right to recover attorney's fees, court costs, and other expenses incurred in enforcing the agreement, highlighting the seriousness with which Budget regards the confidentiality of its operating manual.