In the Budget Rider, what does 'Licensee' refer to?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider is made and entered into as of the day of , |
|---|
| , by and between Avis Budget Car Rental, LLC (hereinafter referred to as "Avis Budget |
| 20 |
| Car Rental"), and |
| d/b/a Budget Rent A Car of |
| ("Licensee"). |
| 1. |
| Background. Avis Budget Car Rental and Licensee are parties to that certain |
| Rental |
| System Agreement dated |
| , 20 |
| (the "Rental System Agreement") |
| that has been signed concurrently with the signing of this Rider. This Rider is annexed to and |
| forms part of the Rental System Agreement. This Rider is being signed because (a) the Budget |
| Franchise that Licensee will operate under the License Agreement with Budget Rent A Car |
| System, Inc. (pursuant to which the parties are signing the Rental System Agreement) will be |
| located within the State of New York and Licensee is a resident of the State of New York; and/or |
| (b) any of the offering or sales activity with respect to that License Agreement occurred in the |
| State of New York. Each provision of this Rider will be effective only to the extent, with respect |
| to such provision, that the jurisdictional requirements of the New York franchise disclosure law |
| and its regulations are met independently without reference to this Rider. |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the term "Licensee" in the context of the Rider refers to the individual or entity that is entering into an agreement with Budget Rent A Car System, Inc. to operate a Budget franchise. Specifically, the Licensee is the party doing business as "Budget Rent A Car of [location]".
The Rider is an addendum to either the Rental System Agreement or the License Agreement between Avis Budget Car Rental, LLC (or Budget Rent A Car System, Inc.) and the Licensee. The Rider's execution is often tied to specific jurisdictional requirements, such as the franchisee's residency or the location of the Budget franchise in states like New York, Illinois, or Minnesota. The terms of the Rider are only effective if they independently meet the franchise disclosure laws of the relevant state.
In essence, the "Licensee" is the prospective Budget franchisee who will be operating the car rental business under the Budget brand, as defined by the agreements and any associated Riders. The Licensee's rights and obligations are further detailed within the Rental System Agreement or License Agreement, and compliance with these agreements is essential.