What section of the Budget License Agreement covers the lien on equipment and property for Budget franchisees?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
nnel's cost of attending these programs, conventions, and seminars, including travel, lodging, meals, and wages.
Below is a list of the training content available in Workday Learning to franchisees.
TRAINING PROGRAM
| 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. |
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 the lien on equipment and property is section 7.7. This information is found in Item 11, which outlines the franchisor's assistance, advertising, computer systems, and training provided to franchisees.
For a prospective Budget franchisee, this means that section 7.7 of the License Agreement will detail the circumstances under which Budget can place a lien on the franchisee's equipment and property. Liens are legal claims against assets, allowing the lienholder (in this case, potentially Budget) to seize and sell the assets if the franchisee defaults on a debt or obligation.
Understanding the conditions under which Budget can place a lien on a franchisee's assets is crucial. Franchisees should carefully review section 7.7 with legal counsel to fully grasp their rights and obligations, and to assess the potential risks associated with this provision. This is a fairly standard clause in franchise agreements, but the specific terms can vary significantly.