For the purposes of the addendum in the Budget FDD, what entities are included in the definition of ABCR?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) ABCR, for the purposes of this Addendum, includes its affiliates, which are defined as any other entity controlling, controlled by or under common control with ABCR and each of their respective successors.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, for the purposes of the addendum, ABCR includes its affiliates. These affiliates are defined as any other entity controlling, controlled by, or under common control with ABCR. This definition also extends to each of their respective successors.
This definition is important for Budget franchisees because it broadens the scope of the agreement beyond just Avis Budget Car Rental, LLC (ABCR) itself. It means that any obligations or rights that ABCR has under the addendum also apply to its parent companies, subsidiaries, and any companies under common ownership. This could have implications for things like service provision, support, and potential liability.
For a prospective franchisee, this means it's crucial to understand the structure of Avis Budget Group and its related entities. Knowing which companies fall under this definition of 'affiliates' can help a franchisee understand who they might be dealing with and who is ultimately responsible for fulfilling the terms of the addendum. It would be prudent for a potential Budget franchisee to seek clarification from Budget regarding the specific entities that fall under the ABCR umbrella to fully understand the scope of the agreement.