Who is required to execute the Nondisclosure and Noncompetition Agreement for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.6 Nondisclosure and Noncompetition Agreement. All persons who are the beneficial owners and principal officers of Licensee will execute Budget's then-current Standard Nondisclosure and Noncompetition Agreement. The current form of Nondisclosure and Noncompetition Agreement is set forth in Exhibit C attached hereto.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, all persons who are the beneficial owners and principal officers of the Licensee are required to execute Budget's standard Nondisclosure and Noncompetition Agreement. The form of this agreement is included as Exhibit C in the FDD.
This requirement ensures that individuals with significant ownership or leadership roles within the franchise are legally bound to protect Budget's confidential information and refrain from competitive activities. This is a common practice in franchising to safeguard the brand's proprietary information and market position.
Prospective franchisees should carefully review Exhibit C to understand the specific terms and restrictions of the Nondisclosure and Noncompetition Agreement. They should also confirm who Budget considers to be 'beneficial owners' and 'principal officers' in their specific business structure to ensure all required parties are prepared to sign the agreement.