What specific paragraphs of the Budget License Agreement relate to nondisclosure and non-competition, as referenced in the Nondisclosure and Noncompetition Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the execution by BUDGET RENT A CAR SYSTEM, INC., of a License Agreement or a Consent Agreement for the Assignment of a therein identified License Agreement, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned, being the Beneficial Owners and Principal Officers of
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Nondisclosure and Noncompetition Agreement references specific paragraphs within the License Agreement that address these issues. Specifically, the agreement states that beneficial owners and principal officers must comply with the provisions of the License Agreement related to nondisclosure and non-competition. These provisions include Paragraph 1.6, Article II, and Paragraphs 11.6 and 11.9 of the License Agreement.
This means that individuals signing the Nondisclosure and Noncompetition Agreement are bound by the terms outlined in those specific sections of the License Agreement. These sections likely contain clauses that restrict the disclosure of confidential information and prohibit engaging in competitive activities during and after the term of the franchise agreement.
For a prospective Budget franchisee, this highlights the importance of carefully reviewing these specific paragraphs within the License Agreement to fully understand the scope and limitations of the nondisclosure and non-competition obligations. It also emphasizes that these obligations extend not only to the franchisee entity but also to the beneficial owners and principal officers of that entity, making them personally liable for compliance.