What is the significance of the date field in the Budget rider agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Rider is made and entered into as of the day of , 20 by |
|---|
| and between Avis Budget Car Rental, LLC. (hereinafter referred to as "Avis Budget Car |
| Rental") and d/b/a Budget Rent A Car of |
| ("Licensee"). |
| 1. |
| Background. Avis Budget Car Rental and Licensee are parties to that certain |
| Rental |
| System |
| Agreement |
| dated |
| , |
| 20 |
| (the |
| "Rental |
| System |
| Agreement") that has been executed concurrently with the execution of this Rider. This Rider is |
| annexed to and forms part of the Rental System Agreement. This Rider is being executed because |
| (a) Licensee is a resident of the State of Illinois, and/or (b) the Budget Franchise that Licensee will |
| operate under the License Agreement with Budget Rent a Car System, Inc. (pursuant to which the |
| parties are signing the Rental System Agreement) will be located within the State of Illinois and |
| the offering or sales activity with respect to that License Agreement occurred or will occur in |
| the State of Illinois. Each provision of this Rider shall be effective only to the extent, with respect |
| to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act are |
| met independently without reference to this Rider. |
| 2. |
| 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, the date field in the rider agreement establishes when the rider agreement is made and entered into by Budget and the licensee. The rider agreement is signed concurrently with either the Rental System Agreement or the License Agreement. The date specifies when the terms and conditions outlined in the rider become effective, modifying or supplementing the original agreement.
The rider is annexed to and forms part of either the Rental System Agreement or the License Agreement. The rider is executed because of specific jurisdictional requirements, such as the franchisee operating in a particular state (e.g., Illinois, Minnesota, or New York) or sales activities occurring in those states. The date ensures that the rider's provisions align with the legal and regulatory requirements of the relevant state, as each provision is effective only to the extent that it meets the jurisdictional requirements of the state's franchise laws.
For a prospective Budget franchisee, the date on the rider agreement is crucial because it signifies the start date for the additional terms and conditions that apply to their franchise, particularly concerning state-specific legal requirements. This date confirms when these modifications to the standard franchise agreement take effect, ensuring compliance with local laws and regulations. The franchisee should verify that the date accurately reflects when the agreement was signed and understand the implications of the rider's provisions for their specific location and operations.