Under the Budget 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 a Concession, neither the Concessionaire nor the Licensee will have any claims against Budget. Furthermore, no terms or conditions contained within the Concession will be binding on Budget unless Budget chooses to accept the assignment. This protects Budget from being held liable for any issues or obligations arising from the Concession agreement between the Concessionaire and the Licensee if they opt not to take over the Concession.

This provision is important for prospective Budget franchisees because it clarifies Budget's position regarding Concession assignments. It means that Budget has the sole discretion to decide whether or not to step into the shoes of the Licensee (franchisee) in a Concession agreement. If Budget declines the assignment, the franchisee cannot hold Budget responsible for any aspect of the Concession. This clause provides Budget with flexibility and shields them from potential liabilities linked to the Concession if they choose not to get involved.

For a potential franchisee, this highlights the need to carefully review the terms of the Concession agreement with the Concessionaire, as Budget's acceptance of the assignment is not guaranteed. Franchisees should understand that Budget's decision not to accept the assignment does not give them any recourse against Budget. This underscores the importance of independent legal and business advice before entering into any agreements related to the Budget franchise, particularly those involving Concessions.