Under what circumstances can a Budget licensee immediately terminate the Addendum by written notice?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Licensee may terminate this Addendum with or without cause by providing ABCR with sixty (60) days prior written notice, provided that in the event Licensee determines not to install, maintain or operate Internet connectivity as mandated by ABCR pursuant to Section II hereof, Licensee may immediately terminate this Addendum by written notice.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee can immediately terminate the Addendum by written notice if they determine not to install, maintain, or operate Internet connectivity as mandated by Avis Budget Car Rental (ABCR) under Section II of the agreement. This specific clause provides an exception to the standard 60-day written notice required for termination with or without cause.
This immediate termination option offers Budget franchisees a degree of flexibility if they find the internet connectivity requirements too burdensome or not feasible for their business operations. It allows them to exit the Addendum quickly without the extended waiting period typically associated with contract terminations. However, it is crucial for franchisees to carefully consider the implications of terminating the Addendum, as it may affect their access to certain services or systems provided by ABCR.
It is important to note that this immediate termination right is specifically tied to the internet connectivity mandate. If a franchisee wishes to terminate the Addendum for other reasons, they are generally subject to the 60-day written notice requirement. Prospective Budget franchisees should carefully evaluate the internet connectivity requirements and their ability to comply before entering into the Addendum to avoid potential issues or the need for termination.