What is the required form of a waiver of obligations under the Budget franchise agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget and Licensee may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or any other effective date stated in the notice of waiver.
Any waiver a party hereto grants will be without prejudice to any other rights it may have, will be subject to its continuing review and may be revoked, in its sole discretion, at any time and for any reason, effective upon delivery to the other party hereto of ten (10) days' prior written notice.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, any waiver of obligations or restrictions must be documented in a specific manner. Budget or the licensee can unilaterally waive or reduce any obligation or restriction upon the other party, but this waiver must be formalized through a written instrument. This written waiver becomes effective once delivered to the other party or on another date if explicitly stated in the waiver notice.
Any waiver granted by either Budget or the licensee does not compromise any other rights they may possess. The waiver is subject to ongoing review and can be revoked at any time, for any reason, at the sole discretion of the party who granted it.
To revoke a waiver, the granting party must provide ten days' prior written notice to the other party. This ensures that the receiving party is informed of the revocation and has time to adjust accordingly. This requirement protects both parties by ensuring clarity and preventing unexpected changes in the enforcement of the franchise agreement.