Which sections of the Budget License Agreement and Rental System Agreement detail the franchisee's obligations for pre-opening purchases/leases?
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 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a franchisee's obligations for pre-opening purchases and leases are detailed in specific sections of both the Budget License Agreement and the Rental System Agreement.
Specifically, the Budget License Agreement outlines these obligations in sections 8.1, 8.2, 9.11, 9.12, 10.2, 10.4, and 10.5. The Rental System Agreement addresses these obligations in sections IV, V, and VI. These sections likely contain information about required equipment, supplies, and real estate considerations necessary to begin operating a Budget franchise.
Prospective franchisees should carefully review these sections to understand the full scope of their financial and operational responsibilities before opening their Budget franchise. Understanding these obligations is crucial for budgeting and planning the initial setup of the business.