Is Budget required to impose additional duties, obligations, or liabilities with respect to any act or practice of discrimination by its Licensees beyond those applicable under Federal, State or local law, according to the agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Except as specifically provided in paragraphs 13 and 14 of this Agreement, nothing herein shall be construed to impose upon Avis any additional duties, obligations, or liabilities with respect to any act or practice, or any alleged act or practice, of discrimination by any of its Licensees beyond those which otherwise might be applicable under Federal, State or local law.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget is generally not required to impose additional duties, obligations, or liabilities with respect to any act or practice of discrimination by its licensees beyond those applicable under Federal, State, or local law. However, this is subject to specific exceptions outlined in the agreement.
The franchise agreement states that unless specifically provided, nothing within the agreement should be interpreted to place additional responsibilities on Budget regarding discriminatory actions by its licensees, beyond what is already mandated by existing laws. This suggests that Budget aims to comply with established legal standards concerning discrimination but does not voluntarily take on extra responsibilities in this area.
This clause provides a degree of protection for Budget from being held liable for actions of its franchisees that might be discriminatory. However, prospective franchisees should carefully review the exceptions mentioned in paragraphs 13 and 14 of the agreement to fully understand the circumstances under which Budget might have additional responsibilities. Understanding these exceptions is crucial for assessing the potential legal and financial risks associated with operating a Budget franchise.