Regarding the Budget License Agreement, is Paragraph 14.8 of the License Agreement deleted in its entirety?

According to Budget's 2025 Franchise Disclosure Document, Paragraph 14.8 of the License Agreement is not deleted in its entirety. Instead, additional language is added to the end of Paragraph 14.8. The added language pertains to the licensee's rights under Minnesota Statutes, specifically Chapter 80C, including the right to submit matters to the jurisdiction of the courts of Minnesota. This addition ensures that the consent to jurisdiction outlined in Paragraph 14.8 does not override the licensee's rights as protected by Minnesota law.

This modification is significant for prospective Budget franchisees in Minnesota, as it clarifies that their rights under Minnesota franchise law are preserved, despite any general consent to jurisdiction clauses in the License Agreement. This could be particularly relevant in the event of disputes or legal proceedings between the franchisee and Budget. The added language ensures that Minnesota franchisees retain the ability to have their cases heard in Minnesota courts and that their statutory rights are not diminished by the franchise agreement.

It is common for franchise agreements to include clauses regarding jurisdiction and governing law, but these clauses can sometimes conflict with state-specific franchise laws. The addition to Paragraph 14.8 appears to be a measure to reconcile the standard terms of the Budget License Agreement with the legal protections afforded to franchisees in Minnesota. This type of modification reflects an effort to comply with state regulations and provide clarity to franchisees regarding their legal rights and options.