What section number is associated with the 'Non-Revenue Ticket' form title for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- Non-Competition. The third and fourth sentences of Paragraph 11.9 of the License Agreement are deleted in their entirety and the following sentences are substituted in their place:
"Licensee further acknowledges the impossibility of accurately determining the tangible and intangible damages which Budget will suffer if Licensee fails or refuses to adhere to this provision or the provisions of Paragraph 1.6 or 2.4 hereof and accordingly agrees that Budget may seek entry, without prior notice, to the extent that applicable notice requirements may be waived, of temporary and permanent injunctions against Licensee's breach of such provisions. Licensee further agrees that Budget may seek an amount equal to the aggregate of Budget's costs of obtaining any such temporary and permanent injunctive relief, including all costs of investigation and proof of facts, court costs and attorney's fees."
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the 'Non-Revenue Ticket' form is associated with section number 6. Specifically, this section relates to non-competition agreements within the broader context of receipts, as detailed in Item 23 of the FDD. This section modifies the License Agreement concerning the franchisee's obligations and Budget's rights regarding non-competition.
This means that as a Budget franchisee, you must adhere to the stipulations in Paragraph 11.9 of the License Agreement, as modified by this section. It emphasizes the importance of complying with non-competition provisions outlined in Paragraphs 1.6 and 2.4 of the License Agreement. Failure to comply could result in Budget seeking injunctive relief against the franchisee without prior notice, to the extent that applicable notice requirements may be waived.
Furthermore, the franchisee may be liable for Budget's costs associated with obtaining injunctive relief, including investigation costs, court costs, and attorney's fees. This highlights the seriousness with which Budget views adherence to non-competition terms and the potential financial implications for franchisees who breach these terms.