Under the agreement, what happens if Budget determines not to accept assignment of the Concession?

According to Budget's 2025 Franchise Disclosure Document, if Budget decides not to accept the assignment of the Concession, neither the Concessionaire nor the Licensee will have any claims against Budget. Furthermore, no terms or conditions contained in the Concession will be binding on Budget unless it elects to accept the assignment. This protects Budget from being held liable for any issues arising from the Concession agreement between the Concessionaire and the Licensee if they choose not to take over the agreement.

This clause is important for prospective Budget franchisees because it clarifies Budget's position regarding the Concession agreement. It ensures that Budget has the discretion to decide whether or not to step into the shoes of the Licensee under the Concession, without incurring any obligations or liabilities if they choose not to. This provides Budget with flexibility in managing its relationships with Licensees and Concessionaires.

For a potential franchisee, this means that the financial stability and operational performance of their Budget franchise is somewhat insulated from the relationship between the Licensee and Concessionaire. However, it also means that Budget's decision not to accept assignment of the Concession could impact the franchisee's location or operating terms, depending on the specifics of the Concession agreement. It would be prudent for a prospective franchisee to understand the typical terms of Concession agreements in their target market and how Budget's acceptance or rejection of assignment might affect their business.