What recourse does Budget have if a Prospective Licensee breaches any provision of the Confidentiality Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, if a Prospective Licensee violates any part of the Confidentiality Agreement, Budget is entitled to specific legal remedies. Budget can pursue injunctive relief, which means they can seek a court order to stop the Prospective Licensee from continuing the actions that breach the agreement. This injunctive relief can be obtained without Budget needing to post a bond, which is a financial security deposit often required in legal proceedings.
In addition to injunctive relief, Budget is entitled to recover all attorney's fees, court costs, and other expenses they incur while enforcing the Confidentiality Agreement. This means that the Prospective Licensee who breached the agreement may be responsible for covering Budget's legal expenses related to the enforcement action.
This provision ensures that Budget can protect its confidential information and trade secrets by taking swift legal action against any potential misuse or disclosure by a Prospective Licensee. The ability to recover legal costs also serves as a deterrent against breaches of the Confidentiality Agreement, as the financial consequences for a Prospective Licensee could be significant.