Where are the requirements for organizational documents related to changes in officers, directors, or managers for a Budget franchise detailed?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee shall notify Budget of the names and addresses of all of Licensee's officers, directors and managers.
Licensee shall notify Budget immediately in the event changes in any such positions occur, including providing Budget with organizational documents executed to effect or approve such change, as set forth in Exhibit G.
Budget reserves the right to periodically run criminal background checks and credit checks on any of Licensee's officers, directors and managers, including at the time of renewal.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Item 23 references section 9.2 of the Budget License Agreement, which states that a licensee must notify Budget of the names and addresses of all of the licensee's officers, directors, and managers. Furthermore, the licensee must notify Budget immediately if there are any changes to those positions.
Specifically, the licensee must provide Budget with organizational documents executed to effect or approve such change, as set forth in Exhibit G. Budget also retains the right to periodically run criminal background checks and credit checks on any of the licensee's officers, directors, and managers, including at the time of renewal.
This means that as a Budget franchisee, you are required to keep Budget informed about the key personnel running your franchise. Any changes in these positions must be promptly communicated along with the appropriate documentation. This allows Budget to maintain oversight and ensure that qualified individuals are managing the franchise, and that they can perform background checks on these individuals.