What is the relationship between the Rider and the Confidentiality Agreement mentioned in the Budget document?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
g is upheld on appeal.
By the Commission,
Donald S. Clark Secretary
ISSUED: January 2, 2008
EXHIBIT D CONFIDENTIALITY AGREEMENT
CONFIDENTIALITY AGREEMENT
| This Confidentiality Agreement is made and entered into as of | , 20 between |
|---|---|
| BUDGET RENT A CAR SYSTEM, INC., a Delaware corporation ("BUDGET") and | , |
| a ("PROSPECTIVE LICENSEE"). |
WHEREAS, PROSPECTIVE LICENSEE desires to evaluate the purchase of a license from BUDGET on the terms and conditions of BUDGET'S License Agreement; and
WHEREAS, in connection with this evaluation, PROSPECTIVE LICENSEE desires to review Budget's Standard Operating Manual, which may consist of several component parts ("Operating Manual"), which Operating Manual contains, and is being maintained as, confidential information and trade secrets of BUDGET; and
WHEREAS, BUDGET will permit inspection of its Operating Manual prior to the execution of a License Agreement only on the terms and conditions of this Confidentiality Agreement;
NOW, THEREFORE, in consideration of being given access to the Operating Manuals, PROSPECTIVE LICENSEE hereby agrees as follows:
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- All information contained in the Operating Manual (the "Confidential Information") shall be used by PROSPECTIVE LICENSEE solely for the purpose of evaluating whether or not to enter into a License Agreement with BUDGET, and for no other purpose.
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- PROSPECTIVE LICENSEE shall not disclose the Confidential Information to any person or entity other than Permitted Parties, as defined below.
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- Confidential Information does not include any item of information, which is either: (a) known to PROSPECTIVE LICENSEE prior to its receipt of such information from BUDGET; (b) known to the public prior to PROSPECTIVE LICENSEE'S receipt of such information from BUDGET; (c) after such receipt, becomes available to the public generally other than by contravention of this Agreement, any Permitted Party's Confidentiality Agreement, or any other duty to or agreement with BUDGET; or (d) is obtained by PROSPECTIVE LICENSEE from a source with the independent right to disclose it.
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- Upon completion of the evaluation process, PROSPECTIVE LICENSEE shall return to BUDGET all copies of the Operating Manual and all other tangible embodiments containing any Confidential Information, including any notes or analyses made by PROSPECTIVE LICENSEE or any Permitted Party.
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- 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.
6. "Permitted Parties" shall mean:
a. Officers, directors and employees of PROSPECTIVE LICENSEE who have previously executed a Confidentiality Agreement in favor of BUDGET; and
- b. Attorneys, agents, consultants, advisors or other independent contractors of PROSPECTIVE LICENSEE, but only if such party:
- (i) Has previously executed a Confidentiality Agreement in favor of BUDGET; and
- (ii) Has previously required all individuals related to it who will have access to the Confidentiality Information to execute a Confidentiality Agreement in favor of BUDGET.
All such Confidentiality Agreements shall be in a form satisfactory of BUDGET, and a person or entity shall not be a Permitted Party until and unless the Confidentiality Agreement executed by the party has been delivered, duly executed, to BUDGET.
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- This Agreement is intended to be a contract governed and construed under the internal laws of the State of New Jersey. Jurisdiction and venue for any dispute arising out of or related to this Agreement shall be in the federal or state courts sitting in New Jersey, and the parties hereto irrevocably consent to the jurisdiction and venue of such courts.
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- The failure of BUDGET to exercise any right hereunder against PROSPECTIVE LICENSEE or any other party shall not be construed as a waiver or a novation. If any portion of this Agreement is determined to be illegal, invalid, or unenforceable under any present or future law by a final judgment of any court of competent jurisdiction, the remainder of this Agreement will not be influenced thereby. It is the intention of the parties hereto that if any such portion is so held illegal, invalid, or unenforceable, that such portion be replaced by terms as similar to such portion as is possible to be legal, valid, and enforceable.
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- This Agreement is the entire agreement between the parties as to its subject matter. Any change to this Agreement must be signed by the PROSPECTIVE LICENSEE and acknowledged in writing by BUDGET.
| PROSPECTIVE LICENSEE | |
|---|---|
| By: Its: | |
| Accepted and Acknowledged: | |
| BUDGET RENT A CAR SYSTEM, INC. | |
| By: | |
| Its: |
EXHIBIT F
LIST OF FORMER FRANCHISEES AND FRANCHISEES WHO HAVE NOT BEEN IN COMMUNICATION WITH BUDGET
as of December 31, 2024
NEW JERSEY SOLOMON CRAMER* 1998 W HARRISBURG PIKE MIDDLETOWN, PA 17057 (717) 944-0484 (2 Locations)
Iowa
WILLIAM WILLIAMSON** 265 STEVENS DRIVE IOWA CITY, IA 52240 319-351-4529 (1 Location)
BUDGET FDD 1 EXHIBIT F 571139220.8
*indicates franchisee with open and operating units
**indicates franchisee no longer in contact with ABG – reacquired and/or transferred locations
EXHIBIT H
LICENSE AGREEMENT
BUDGET RENT A CAR SYSTEM LICENSE AGREEMENT
TABLE OF CONTENTS
PAGE
| ARTICLE I | EXCLUSIVE LICENSE | 6 |
|---|---|---|
| 1.1 | Exclusive License | 6 |
| 1.2 | Reservation of Rights for Licensee's Rental Business | |
| 1.3 | Prohibition Against Sublicensing | |
| 1.3 | ||
| 1.4 | Territory Exclusive Relationship MARKS AND SYSTEM | |
| 2.1 | Budget's Exclusive Ownership | 7 |
| 2.2 | Notification of Infringement/Claim | |
| 2.2 | Limitation On Use | |
| 2.3 | Nondisclosure | |
| 2.5 | System Ideas Modifications to the System | |
| 2.6 | ||
| 2.0 | Modifications to the System | 9 |
| ARTICLE II | I BUDGET MANUAL | 9 |
| ARTICLE I | V INSTRUCTION AND OPERATING ASSISTANCE | 10 |
| 4.1 | Pre-opening Instruction | 10 |
| 4.2 | Operating Assistance and Training; Correcting Deficiencies | 10 |
| 4.3 | Attendance at Conventions/Seminars | |
| ARTICLE V | ADVERTISING AND PROMOTION BY BUDGET | 11 |
| 5.1 | Monthly Marketing Fees Allocated to Advertising and Promotion | 11 |
| 5.2 | Advertising and Promotion Conducted by Budget | |
| 5.3 | International Directory | |
| ARTICLE V | T PROGRAMS | 12 |
| THETTELL V | ||
| 6.1 | National, Travel Programs and Other Account Participation | 12 |
| 6.2 | Reservation and Rental Systems | |
| 6.3 | Customer Complaint Programs | |
| 6.4 | Payment Programs | |
| 6.5 | Inter-City Program | |
| 6.6 | Other Budget Programs. | |
| ARTICLE V | II FEES AND OTHER PAYMENTS | |
| 7.1 | Lewis L. Commanda and E. |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Rider and Confidentiality Agreement serve distinct purposes within the franchise relationship. The Confidentiality Agreement is used during the initial evaluation phase, before a License Agreement is signed. It allows prospective licensees to review Budget's confidential Standard Operating Manual while protecting Budget's trade secrets. The Rider, on the other hand, is an amendment to the existing License Agreement, addressing specific legal considerations or modifications to the original terms.
The Confidentiality Agreement ensures that prospective franchisees, and their permitted parties such as officers, directors, employees, attorneys, agents, consultants, advisors, or other independent contractors, do not misuse or disclose Budget's confidential information obtained during their evaluation. These permitted parties must also sign a Confidentiality Agreement. This agreement outlines the scope of permitted use, restrictions on disclosure, and obligations to return confidential materials upon completion of the evaluation process.
The Rider modifies the Franchise Agreement. For example, in Illinois, the Rider ensures compliance with the Illinois Franchise Disclosure Act. In North Dakota, the Rider addresses concerns about liquidated damages, termination penalties, and covenants not to compete, reflecting specific legal protections for franchisees in those states. In Maryland, the Rider ensures that any release required as a condition of renewal or transfer does not waive rights under the Maryland Franchise Registration and Disclosure Law. The Rider is executed concurrently with the License Agreement and becomes part of it, tailoring the agreement to specific state laws or agreed-upon modifications.