Does the Budget Rent A Car System License Agreement contain clauses related to both nondisclosure and noncompetition?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of the Budget License Agreement | Summary |
|---|---|---|
| q. Non-competition during the term of the franchise | 1.6 and Nondisclosure and Noncompetition Agreement | No involvement in other vehicle rental business or system in the United States. |
| r. Non-competition covenants after the franchise is terminated or expires | 11.9, 12.6, and Nondisclosure and Noncompetition Agreement | No competing business for one year in licensed territory or within five miles of licensed territory. |
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
Yes, according to Budget's 2025 Franchise Disclosure Document, the Budget Rent A Car System License Agreement includes clauses pertaining to both nondisclosure and noncompetition.
Specifically, the agreement contains a clause addressing non-competition during the term of the franchise. According to Section 1.6 and the Nondisclosure and Noncompetition Agreement, franchisees are prohibited from involvement in any other vehicle rental business or system within the United States during the term of their agreement with Budget.
Additionally, the agreement includes non-competition covenants that apply after the franchise is terminated or expires. Sections 11.9, 12.6, and the Nondisclosure and Noncompetition Agreement state that franchisees are restricted from engaging in any competing business for one year within their licensed territory or within five miles of their licensed territory after the termination or expiration of their Budget franchise agreement. This ensures that former franchisees do not directly compete with Budget in the immediate aftermath of their franchise relationship ending.