Which section of the Rental System Agreement is deleted and replaced by the Rider for Budget franchisees in Illinois?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Applicable Law. Section XII, Paragraph 5(a) of the Rental System Agreement is deleted in its entirety and the following is substituted in its place: "This Agreement will be governed by and construed under and in accordance with the laws of the State of Illinois without giving effect to its conflicts rules."
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Section XII, Paragraph 5(a) of the Rental System Agreement is deleted in its entirety and replaced by the Rider for Budget franchisees in Illinois. The new section specifies that "This Agreement will be governed by and construed under and in accordance with the laws of the State of Illinois without giving effect to its conflicts rules."
This means that for Budget franchisees in Illinois, the laws of Illinois will govern the Rental System Agreement, regardless of any conflict of laws principles that might otherwise apply. This ensures that Illinois franchisees will have their contractual relationship with Budget interpreted under the legal framework of their home state.
This change is likely due to the Illinois Franchise Disclosure Act, which aims to protect franchisees within the state. By specifying Illinois law, the rider ensures that the agreement complies with Illinois regulations and provides a more predictable legal environment for the franchisee.