Regarding renewal or extension of the Budget License Agreement, what rights are retained by the franchisee under New York General Business Law?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The "Summary" section of Item 17(c), entitled Requirements for you to renew or extend, and Item 17(m), entitled Conditions for Budget's approval of transfer, in the Budget License Agreement chart of Item 17 are amended by adding the following:
"However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the nonwaiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied."
- The "Summary" sections of Item 17(v), entitled Choice of forum, and 17(w), entitled Choice of law, in the Budget License Agreement chart of Item 17 are amended by adding the following:
"However, the governing choice of law and choice of forum shall not be considered a waiver of any right conferred upon you by the provisions of Article 33 of the General Business Law of the State of New York."
- There are circumstances in which an offering made by Budget would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in and the franchise will be opened in New York. Budget is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, several provisions ensure that franchisees retain their rights under New York General Business Law, specifically Article 33, during the renewal or extension of their Budget License Agreement. The "Summary" section of Item 17(c), which addresses the requirements for franchisees to renew or extend their agreement, is amended to explicitly state that all rights and causes of action arising from Article 33 of the General Business Law of the State of New York and its regulations remain in force. This amendment ensures compliance with the nonwaiver provisions of General Business Law Sections 687.4 and 687.5. This means that Budget franchisees in New York cannot be forced to waive their legal rights under New York franchise law when renewing their agreements.
Additionally, the FDD states that the governing choice of law and choice of forum specified in the Budget License Agreement will not be considered a waiver of any right conferred upon the franchisee by the provisions of Article 33 of the General Business Law of the State of New York. This applies to sections of Item 17 concerning choice of forum and choice of law. This ensures that franchisees can still pursue their rights under New York law, even if the agreement specifies a different jurisdiction or governing law.
Budget is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33. The offer or sale is deemed made in New York if the franchisee is domiciled there and the franchise will be opened there. These stipulations collectively reinforce the protection of Budget franchisees' rights under New York law, preventing any contractual terms from inadvertently or intentionally overriding those rights during the renewal or extension process.