What section of the Budget License Agreement addresses additional development in the Territory?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN AGREEMENT | ITEM IN DISCLOSURE DOCUMENT |
|---|---|---|
| w. Non-competition covenants | 1.6 and 11.9 and the Nondisclosure and Noncompetition Agreement of the Budget License Agreement | Item 17 |
| x. Dispute Resolution | 14.9 to 14.13 of the Budget License Agreement XIX of the Intercity Program | Item 17 |
| y. Intercity Rentals | The Intercity Rules and Regulations | Items 1, 6, 8, 16, and 17 |
| z. Personal Guarantee | 12.7 and Exhibit A of the Budget License Agreement were intentionally deleted | Items 1, 7, 15 |
| aa. Assignment of account | 7.7 and 14.5 of the Budget License | |
| and other receivables | Agreement | |
| bb. Lien on equipment and | 7.7 of the Budget License Agreement | |
| property | ||
| cc. Honor National Account agreements and participate in Programs | Art. VI. 9.13, 11.10 and VI of the Budget License Agreement | Items 1, 6, 11, and 12 |
| dd. Additional | 8.6 of the Budget License Agreement | Item 12 |
| development in | ||
| Territory |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the section of the Budget License Agreement that addresses additional development in the territory is paragraph 8.6.
This means that if a franchisee wants to expand their Budget operations within their designated territory, they should refer to paragraph 8.6 of the Budget License Agreement for the specific terms and conditions. This section likely outlines the requirements, restrictions, and procedures for opening additional Budget locations within the franchisee's exclusive area.
Prospective franchisees should carefully review paragraph 8.6 to understand their rights and obligations regarding territory development. This includes understanding any performance metrics that must be met, capital requirements for expansion, and the approval process for new locations. Understanding these terms is crucial for planning future growth and maximizing the potential of the franchise.