After the term of the Budget License Agreement, can I reproduce Budget's operating manual?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not, during the term of your Budget License Agreement or afterwards, reproduce, exhibit, or disclose to any person other than your partners, shareholders, officers, and employees, the operating manual or any other confidential element of, or information about, the Rent A Car System. You must also acknowledge that these items are trade secrets, in which Budget has made a substantial investment and has a legitimate right to protect against unlawful disclosure.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 64–65)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, you are prohibited from reproducing the operating manual both during and after the term of the Budget License Agreement. The manual and its contents are considered confidential and trade secrets, representing a substantial investment by Budget. This restriction extends to exhibiting or disclosing the manual or any confidential information about the Rent A Car System to anyone other than your partners, shareholders, officers, and employees, and even then, only with a commitment to confidentiality.
This means that upon termination of your franchise agreement with Budget, you must cease all use of the operating manual and ensure its confidentiality is maintained. You cannot use the information contained within the manual to operate a competing business or share it with others who might do so. This is a standard practice in franchising, as franchisors need to protect their proprietary information and systems.
The FDD also states that Budget claims a copyright in its Manual, advertising material, and related items used in operating a Budget Franchise, whether Budget registered or unregistered with the United States Registrar of Copyrights. You must notify Budget of any potential copyright infringements. Budget can then take action, or no action, in response to these matters and control exclusively any settlement, litigation, arbitration, administrative, or other proceeding arising out of any alleged infringement, challenge, or claim or otherwise relating to the copyrighted works. Budget has no obligation to participate in your defense or indemnify you for damages or expenses you incur if you are a party to any proceeding involving the copyrighted work.
As a prospective franchisee, it is crucial to understand the scope of these restrictions and ensure you have a plan for transitioning out of the Budget system without relying on their confidential information. Violation of these terms could lead to legal action from Budget, including injunctive relief and financial penalties.