Is Budget subject to any currently effective injunctive or restrictive order or decree relating to the franchise, or under any federal, state or Canadian franchise, securities, antitrust, trade regulation or trade practice law, as a result of a concluded or pending action or proceeding brought by a public agency?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for the litigation disclosed in Item 3, with regard to Budget, its predecessor or predecessors, and the persons identified in Item 2 or an affiliate offering franchise under Budget's principal trademark:
- C. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under any federal, state or Canadian franchise, securities, antitrust, trade regulation or trade practice law, as a result of a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent."
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, with the exception of litigation disclosed in Item 3, neither Budget, its predecessors, nor individuals identified in Item 2, or any affiliate offering franchises under Budget's principal trademark, are subject to any currently effective injunctive or restrictive order or decree relating to the franchise. This extends to orders or decrees under any federal, state, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from concluded or pending actions brought by a public agency.
This statement assures prospective Budget franchisees that the company is not currently under any legal restrictions that could impact their ability to operate a franchise. It indicates that Budget has not faced legal actions from regulatory bodies that resulted in injunctions or restrictive orders related to franchise operations, securities, antitrust matters, or trade practices.
It is important to note that this statement is qualified by the litigation disclosed in Item 3 of the FDD. A prospective franchisee should carefully review Item 3 to understand the nature and potential impact of any ongoing litigation involving Budget. This due diligence will provide a comprehensive understanding of Budget's legal standing and any potential risks associated with investing in a Budget franchise.