In the Rider, what is the agreement between Budget Rent A Car System, Inc. and the Prospective Licensee called?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider is entered into this day of BUDGET RENT A CAR SYSTEM, INC., a I | Delaware corporation ("BUDGET") and |
|---|---|
| ("PROSPECTIVE LICENSEE"). | , |
| 1. Background . BUDGET and PROSP certain "Confidentiality Agreement" dated concurrently with the execution of this Rider. This R Confidentiality Agreement. This Rider is being execute is a resident of the State of Illinois, and/or (b) the Budget will operate if it signs a License Agreement with BUDGI and the offering or sales activity with respect to the License State of Illinois. Each provision of this Rider shall to such provision, that the jurisdictional requirements and met independently without reference to this Rider. | ed because (a) PROSPECTIVE LICENSEE Franchise that PROSPECTIVE LICENSEE ET will be located within the State of Illinois tense Agreement occurred or will occur in be effective only to the extent, with respect |
| 2. Law and Jurisdiction . Paragraph 7 of in its entirety and replaced with the following: | of the Confidentiality Agreement is deleted |
| "This Agreement is intended to be a contract laws of the State of Illinois." | governed and construed under the internal |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to the 2025 Budget FDD, the agreement between Budget Rent A Car System, Inc. and the Prospective Licensee is referred to as a "Confidentiality Agreement." The Rider itself is related to this agreement, as it is executed concurrently with the Confidentiality Agreement. The Rider's execution is contingent upon the Prospective Licensee being a resident of Illinois, or if the Budget franchise the Prospective Licensee intends to operate is located within Illinois, and if the offering or sales activity related to the License Agreement occurred or will occur in Illinois. The terms within the Rider are only effective if they independently meet the jurisdictional requirements of the Illinois Franchise Disclosure Act, without relying on the Rider itself.
This agreement and its Rider are important for prospective franchisees in Illinois as they outline the specific legal and jurisdictional requirements that must be met. The Rider modifies certain aspects of the Confidentiality Agreement, particularly concerning governing law and jurisdiction, to align with Illinois state laws. Specifically, Paragraph 7 of the Confidentiality Agreement is replaced to ensure the contract is governed and construed under Illinois law.
For a prospective Budget franchisee, understanding these agreements is crucial. It ensures that the franchisee is aware of the specific legal framework governing their relationship with Budget within the state of Illinois. It also highlights the importance of seeking legal counsel to fully understand the implications of these documents and how they affect the franchisee's rights and obligations under Illinois law.