Does the Budget Rent A Car System License Agreement include a Nondisclosure Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In this disclosure document, "Budget" means Budget Rent A Car System, Inc., the franchisor. "You" or "Your" means the person awarded a Budget Franchise. If you are a corporation, partnership, limited liability company, or other business entity, certain provisions of the Budget Rent A Car System License Agreement (together with all Exhibits and ancillary agreements, the "Budget License Agreement" or "License Agreement") (Exhibit H) also will apply to your owners under the Nondisclosure and Noncompetition Agreement (Exhibit C to the Budget License Agreement) and Personal Guarantee (Exhibit A to the Budget License Agreement).
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Budget Rent A Car System License Agreement does include a Nondisclosure Agreement. Specifically, the document states that if the franchisee is a corporation, partnership, limited liability company, or other business entity, certain provisions of the Budget License Agreement will apply to the owners under the Nondisclosure and Noncompetition Agreement, which is Exhibit C to the Budget License Agreement.
This means that owners of a Budget franchise operated under a business entity will be bound by the terms of the Nondisclosure and Noncompetition Agreement. This agreement likely restricts the owners from disclosing confidential information about the Budget system and from competing with Budget, both during the term of the franchise agreement and for a certain period after its termination.
Prospective franchisees should carefully review Exhibit C of the Budget License Agreement to understand the specific terms and conditions of the Nondisclosure and Noncompetition Agreement. This includes the scope of confidential information covered, the duration of the non-competition period, and any geographic limitations. Understanding these restrictions is crucial for assessing the potential impact on the franchisee's future business activities.