What specific section of the Rental System Agreement is deleted and replaced by the Rider for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- | 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, for franchisees operating in Illinois, Section XII, Paragraph 5(a) of the Rental System Agreement is entirely deleted and replaced by a provision specifying that Illinois law governs the agreement. This change is implemented through a Rider to the Rental System Agreement.
This modification ensures that the agreement is governed by Illinois law, which may offer different protections or regulations compared to the original jurisdiction specified in the Rental System Agreement. This is particularly relevant because the franchisee is a resident of Illinois or the Budget franchise will be located within Illinois, and the offering or sales activity occurred or will occur in Illinois.
For prospective Budget franchisees in Illinois, this means that their contractual relationship with Avis Budget Car Rental, LLC will be interpreted and enforced under Illinois law, regardless of what the original agreement stated. Franchisees should familiarize themselves with Illinois franchise laws to understand their rights and obligations. This change aims to ensure compliance with the Illinois Franchise Disclosure Act.