Under what circumstances is ABCR not liable for damages related to the Reservation System for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ABCR shall not be liable for any damages, including, for example, consequential damages, for delays in the performance of, or inability to perform, the services contemplated hereunder, or for any errors or omissions with respect to information or data processed or delivered, or to be processed or delivered through the Reservation System and Licensee hereby waives and releases ABCR from any such liability.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, ABCR (Avis Budget Car Rental, LLC) has specific limitations on its liability regarding the Reservation System. ABCR is not liable for any damages, including consequential damages, resulting from delays or inability to perform services related to the Reservation System. This also includes errors or omissions in the information or data processed or delivered through the system.
This means that if a Budget franchisee experiences losses due to issues with the Reservation System, such as delays in processing reservations or incorrect data, ABCR is generally not responsible for covering those losses. The franchisee waives and releases ABCR from such liability. However, this limitation does not extend to situations involving ABCR's willful misconduct.
For a prospective Budget franchisee, this underscores the importance of understanding the potential risks associated with relying on the Reservation System and the limitations of ABCR's liability. While the system is crucial for managing reservations and operations, franchisees should be prepared for potential disruptions and have contingency plans in place. It would be prudent to inquire about the typical frequency and impact of Reservation System outages or errors during the due diligence process.