Regarding confidential information communicated by Budget, are Budget franchisees prohibited from disclosing this information to their partners, shareholders, directors, and employees?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
You may view the Manual before you purchase a Budget Franchise if you sign the Confidentiality Agreement attached to this disclosure document as Exhibit D (the Budget License Agreement, Article III). You cannot, during the term of your Budget License Agreement or after the Agreement is terminated:
- a) reproduce, exhibit, or disclose the Manual, or any confidential element of or information about a Budget Franchise, to anyone other than your partners, shareholders, directors, and employees; or
- b) disclose any confidential information communicated to your partners, shareholders, directors, and employees by or at the direction of Budget.
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, there are restrictions on disclosing confidential information. Franchisees are prohibited from disclosing confidential information communicated by Budget to their partners, shareholders, directors, and employees. This restriction applies both during the term of the Budget License Agreement and after its termination.
Budget provides franchisees with a Manual that contains confidential information. Franchisees must sign a Confidentiality Agreement before viewing the manual. The franchisee cannot reproduce, exhibit, or disclose the Manual, or any confidential element of or information about a Budget franchise, to anyone other than their partners, shareholders, directors, and employees.
This policy protects Budget's proprietary information and trade secrets, which is a common practice in franchising. Prospective franchisees should carefully review the Confidentiality Agreement and understand the scope of these restrictions before signing the agreement. Franchisees should also ensure that their partners, shareholders, directors, and employees are aware of these confidentiality obligations.