What is required of all individuals related to a prospective Budget licensee's attorneys, agents, consultants, advisors or other independent contractors who will have access to Confidentiality Information?

According to Budget's 2025 Franchise Disclosure Document, if a prospective licensee's attorneys, agents, consultants, advisors, or other independent contractors require access to confidential information, specific measures must be taken. Budget requires that the party in question must first execute a Confidentiality Agreement in favor of Budget. Furthermore, they must ensure that all individuals related to them who will have access to the Confidentiality Information also execute a Confidentiality Agreement in favor of Budget. All Confidentiality Agreements must be in a form satisfactory to Budget, and no party is considered a "Permitted Party" until Budget receives a duly executed copy of their Confidentiality Agreement.

This requirement ensures that Budget maintains control over its confidential information and trade secrets during the evaluation phase of a potential licensing agreement. By mandating confidentiality agreements from all parties with access, Budget aims to minimize the risk of unauthorized disclosure or misuse of its proprietary information. This is a standard practice in franchising, as franchisors need to protect their operational manuals and other sensitive data.

For a prospective Budget licensee, this means they must manage the process of obtaining and submitting confidentiality agreements from their advisors and related individuals. This adds an administrative step to the due diligence process but is crucial for maintaining a good relationship with Budget and ensuring compliance with the terms of the confidentiality agreement. The licensee should ensure that all involved parties understand the importance of keeping Budget's information confidential and adhere to the terms outlined in the agreement.