Who is responsible for damages to ABCR or the System resulting from unauthorized access through a Budget licensee's equipment when Controls are not in place?

According to Budget's 2025 Franchise Disclosure Document, the licensee is responsible for any damages suffered by ABCR and/or the System if unauthorized access occurs due to the licensee's failure to maintain required security controls on their equipment. This means that if a Budget franchisee does not properly implement and maintain the security measures mandated by ABCR, they will be held liable for any resulting damages from security breaches.

These security controls, referred to as "Controls," include hardware firewall protection, anti-malware protection, personal firewall protection, intrusion detection, and encryption for data transmission. The franchisee is expected to employ these controls and commercially reasonable security mechanisms. They are also responsible for the actions of their authorized users and for ensuring that unauthorized users do not gain access to the system due to the franchisee's negligence.

Budget franchisees must ensure they adhere to ABCR's security policies and procedures to avoid potential liability for damages resulting from unauthorized access. This includes keeping their systems updated with security patches, using approved security products, and enforcing policies regarding password protection and scanning files for viruses. Failure to comply with these requirements can lead to suspension from network access and potential financial responsibility for damages incurred by ABCR or the System.