How quickly must a Budget licensee notify Budget of changes in officers, directors, or managers?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee shall notify Budget of the names and addresses of all of Licensee's officers, directors and managers.
Licensee shall notify Budget immediately in the event changes in any such positions occur, including providing Budget with organizational documents executed to effect or approve such change, as set forth in Exhibit G.
Budget reserves the right to periodically run criminal background checks and credit checks on any of Licensee's officers, directors and managers, including at the time of renewal.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee must notify Budget immediately of any changes to the licensee's officers, directors, and managers. This notification must include organizational documents that effect or approve such change, as detailed in Exhibit G.
This immediate notification requirement ensures that Budget is always aware of who is managing and directing the Budget franchise. This allows Budget to maintain oversight and ensure that the franchise is being managed by individuals who meet their standards. Budget also reserves the right to periodically run criminal background checks and credit checks on any of the licensee's officers, directors, and managers, including at the time of renewal.
For a prospective Budget franchisee, this means that any changes in leadership or management personnel must be promptly communicated to Budget. Failing to do so could be a breach of the franchise agreement. The requirement to provide organizational documents ensures that the changes are properly documented and approved, adding another layer of accountability.