What specific paragraphs of the Budget License Agreement are referenced in the non-competition section of the Minnesota Rider?
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 Minnesota Rider modifies the non-competition terms within the License Agreement. Specifically, it states that the third and fourth sentences of Paragraph 11.9 of the License Agreement are deleted and replaced with new sentences. These new sentences emphasize that if a licensee violates the non-competition provisions or the provisions of Paragraphs 1.6 or 2.4, Budget can seek injunctive relief against the licensee without prior notice, to the extent that applicable notice requirements may be waived.
Furthermore, Budget is entitled to recover all costs associated with obtaining injunctive relief, including investigation costs, proof of facts, court costs, and attorney's fees. This modification strengthens Budget's ability to enforce the non-competition terms and protect its interests in the Minnesota market.
For a prospective franchisee, this means that strict adherence to the non-competition clauses and the referenced paragraphs (1.6 and 2.4) is crucial to avoid potential legal action and financial penalties. It is important to carefully review and understand these sections of the License Agreement to ensure compliance and avoid any actions that could be construed as a breach of contract.