What section of the Budget License Agreement addresses non-competition covenants?
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 |
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 non-competition covenants within the Budget License Agreement are addressed in sections 1.6 and 11.9, as well as in the Nondisclosure and Noncompetition Agreement. Item 17 of the disclosure document also pertains to these covenants.
For a prospective Budget franchisee, this means that the specific terms and conditions regarding non-competition obligations are detailed in these sections of the agreement. It is crucial to carefully review these sections to understand the scope and limitations of the non-competition clauses.
These clauses typically restrict a franchisee's ability to engage in similar businesses during and after the term of the franchise agreement, within a specified geographic area. Understanding these restrictions is essential for planning future business activities and avoiding potential legal issues with Budget.