What is the relationship between the required computer systems for a Budget franchise (Item 11) and the standards and specifications outlined in Item 8?

to purchase the franchise.

ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

Standards.

To maintain a uniformly high standard of performance among all Budget Rent A Car businesses, you must develop and operate your Budget Franchise in strict compliance with the Budget License Agreement and all standards, specifications, and operating procedures that Budget designates, including but not limited to the Budget Rent A Car Administration Manual (the "Manual"), as Budget may periodically modify them (the "Standards"). If Budget requires, your Budget Franchise must use the vehicle models that Budget periodically specifies in the Standards or otherwise in writing. Budget does not currently specify makes or models for the vehicles that Budget Franchises rent, but you must maintain all vehicles in a clean and presentable condition and maintain the quality standards that Budget periodically specifies for vehicles. Standards also govern the letter and number symbols you must use for communicating rental rates, vehicle types, credit cards, and other similar information related to rental transactions. Budget formulates and modifies its Standards based on its and other Network members' experience in developing and operating Budget Rent A Car businesses. Budget will notify you in the Manual and in other written or electronic communications of the Standards (and modifications to the Standards).

Other required and optional agreements provide specifications for purchases or leases during the establishment or operation of your Budget Franchise. The Intercity Rules and Regulations contain specifications (including rental rates) for aspects like fleet size and insurance. The Corporate Rate Program regulates some aspects of your rental rates, incentives, and other terms of transactions with Corporate Rate Program customers. Budget and its affiliates may periodically modify these standards and specifications.

Other than a non-controlling interest in our ultimate parent, none of our officers own an interest in any supplier.

Designated and Approved Suppliers.

Your Budget Franchise must participate in Wizard, according to the Rental System Agreement. ABCR administers the Wizard System and is the only supplier of reservation and rental system services to Budget Franchises. ABCR also provides reservation and rental processing services using Wizard for Avis and the Avis Rent A Car business network. All of the fees and other revenues that ABCR currently receives from Budget Franchises for providing Wizard services are described in Item 6. During 2024, Wizard Services, Inc. received approximately $2,213,492.72 from providing reservation services to the Network (based on Wizard Service, Inc.'s internal unaudited financial records) which represents 1.13% of its total revenue of $195,045,351. Except as described in this Item, neither Budget nor its affiliates derive any revenue as a result of required purchases or leases of franchisees.

Budget requires you to execute the Rental System Agreement with ABCR, which agreement provides for all reservation and back office functionalities to your Budget Franchise. Under the Rental System Agreement you must buy certain hardware, software, and communications utilized in connecting to Wizard only from Approved Suppliers (see Item 11). In connection with a Thin Client infrastructure providing you with PCI compliant access to the Wizard System, the Thin Client Terminals must be purchased from an Approved Supplier through ABCR. The fee collected from you is forwarded to the supplier. (Schedule B to the Rental System Agreement and Schedule 4 of the Administrative Services Addendum). Additionally, the Site Surveys must be purchased only from Approved Suppliers.

Subject to Budget's approval, you may, and if Budget requires, you must, in addition to renting vehicles, sell or rent to your vehicle rental customers products and services directly related to your vehicle rental business. Budget may require you to sell or rent to your customers designated product brands and to obtain the products or services that you will sell to your customers only from designated or approved sources. Budget does not currently require you to sell any products or services other than Loss Damage Waiver, but may do so in the future. Unless you have a Budget Car Sales Addendum, you are not authorized to sell vehicles using Budget's Proprietary Marks.

You must purchase from us, Budget or our approved supplier, sequentially-numbered Standard Rental Agreement forms and jackets and additional driver forms for use in renting vehicles. Together these documents contain the terms and conditions of the rental contract, and the purchase of these documents from us and/or our approved supplier achieves uniformity and quality control for the System. The Standard Rental Agreement, a multipart form, is also designed to meet specifications for the Wizard System and the Avis Computer System (together "Wizard") and our audit requirements. We may derive revenue from selling Standard Rental Agreement forms and jackets and additional driver forms to you. Budget derives revenue from the sale of Standard Rental Agreement forms and jackets and additional driver forms to franchisees. For the fiscal year ending 2024, BRACS' revenues from the sale of Standard Rental Agreement forms and jackets and additional driver forms was approximately $759,909.46 of BRACS' total revenue, not including the Generic Rental Agreements.

In addition, you must purchase items that bear a Proprietary Mark or which are part of the System identity that meet our specifications as to style, color, design, etc. Examples of these items are stationery, signage, backwall counter modules, and uniforms. Precise product specifications exist for each of these items and are made available to franchisees. However, existing franchisees purchase most of these required items from the suppliers with which we have negotiated purchase contracts due to the better pricing and available supply.