What sections of the Budget License Agreement outline the franchisee's obligations related to opening a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Insurance | Minimum Amount |
|---|---|
| Fleet Insurance | $100,000 / $300,000 bodily injury and$50,000 per occurrence for property damage, or such other amounts as are required by local law. |
| Lessor’s / Owner’s Excess Liability Insurance | $1,000,000 combined single limit per occurrence |
| General Liability Insurance | $1,000,000 combined single limits |
| OBLIGATION | SECTION IN AGREEMENT |
| a. Site selection and | 8.1 to 8.3 of the Budget License Agreement |
| acquisition/lease | |
| b. Pre-opening purchases/leases | 8.1, 8.2, 9.11, 9.12, 10.2, 10.4 and 10.5 of the Budget License Agreement IV, V and VI of the Rental System Agreement |
| c. Site development and other pre-opening requirements | Art. VIII of the Budget License Agreement Art. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, several sections of the Budget License Agreement and related documents outline the franchisee's obligations when opening a Budget franchise. These obligations encompass various aspects of the pre-opening phase, including site selection, pre-opening purchases, and overall site development.
Specifically, the franchisee's responsibilities regarding site selection and acquisition/lease are detailed in sections 8.1 to 8.3 of the Budget License Agreement. Pre-opening purchases and leases are covered in sections 8.1, 8.2, 9.11, 9.12, 10.2, 10.4 and 10.5 of the Budget License Agreement, as well as sections IV, V and VI of the Rental System Agreement. Site development and other pre-opening requirements are found in Article VIII of the Budget License Agreement, Articles IV and V of the Rental System Agreement, and section I of the Intercity Rules and Regulations.
Furthermore, the opening process itself is addressed in sections 8.4 and 10.2, along with the Summary Pages of the Budget License Agreement. These multiple references across different agreements highlight the comprehensive nature of the franchisee's obligations during the initial setup phase, ensuring adherence to Budget's standards and operational guidelines.