Are there any agreements that limit Budget's right to use or license the use of Budget's Proprietary Marks?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
No agreements limit Budget's right to use or license the use of Budget's Proprietary Marks. Budget does not know of any superior prior rights or infringing use that could materially affect your use of Budget's Proprietary Marks.
You must notify Budget immediately when you learn about an infringement of or challenge to your use of Budget's Proprietary Marks or of any person's claim of any rights in any of Budget's Proprietary Marks or any similar name or mark. Budget will take the action it thinks appropriate and has the exclusive right to control any litigation or administrative proceeding arising out of the infringement, challenge, or claim or otherwise relating to any of Budget's Proprietary Marks. Budget is not required to indemnify or defend you against claims from your use of Budget's Proprietary Marks, or to protect your right to use these marks. You must modify or discontinue the use of any of Budget's Proprietary Marks at Budget's direction. You will be granted the right to use the modified marks in accordance with the terms of the License Agreement applicable to the current proprietary marks. If this happens, we will reimburse you for your tangible costs of compliance (for example, changing signs). You must not directly or indirectly contest our right to our trademarks, trade secrets or business techniques that are part of a Budget franchise.
Source: Item 13 — TRADEMARKS (FDD pages 63–64)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, there are no agreements that limit Budget's right to use or license its proprietary marks. Budget also states that it is not aware of any superior prior rights or infringing use that could materially affect a franchisee's use of Budget's Proprietary Marks. This suggests that Budget has full control over its trademarks and can license them to franchisees without restrictions from other parties. This is a positive sign for prospective franchisees, as it indicates that Budget has secured its brand identity and can protect its trademarks.
Budget requires franchisees to notify them immediately if they learn of any infringement or challenges to the use of Budget's Proprietary Marks. Budget retains the exclusive right to control any litigation or administrative proceedings arising from such infringements, challenges, or claims. However, Budget is not required to indemnify or defend franchisees against claims arising from their use of Budget's Proprietary Marks, nor are they obligated to protect the franchisee's right to use these marks. This means that while Budget will take action to protect its trademarks, the franchisee may bear some risk in defending their right to use the marks.
Budget may require franchisees to modify or discontinue the use of any of Budget's Proprietary Marks. If this occurs, Budget will reimburse the franchisee for tangible costs of compliance, such as changing signs. Franchisees are prohibited from contesting Budget's rights to its trademarks, trade secrets, or business techniques. This clause reinforces Budget's control over its brand and intellectual property, ensuring uniformity and preventing franchisees from challenging the established brand identity. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand and prevent franchisees from developing competing brands.