Can Budget revoke a waiver it previously granted to a Budget licensee?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6 Waiver.
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, Budget has the right to revoke a waiver that it previously granted to a licensee. The waiver must be provided in writing. Budget can revoke the waiver at its discretion, at any time, and for any reason.
To revoke a waiver, Budget must deliver a written notice to the licensee at least ten days before the revocation becomes effective. This allows the licensee time to adjust to the change.
This clause gives Budget significant flexibility in managing its franchise relationships. It also means that a Budget franchisee cannot rely on a previously granted waiver as a permanent change to their obligations under the franchise agreement, as Budget can change its position with only ten days' notice.