Under what circumstances will a Budget licensee be responsible for damage or expenses incurred by ABCR and other system users related to equipment?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ch equipment.
ACQUISITION OF EQUIPMENT
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- Except as provided in Article IV.2. above, Licensee, at its own expense, will acquire, install and maintain, all on-site computer/terminal equipment, computer/terminal interconnections, modems, controllers and other communication equipment, interconnections and services, including an ISP if Licensee elects to connect to the System via the Internet, backup capabilities and materials it may require from time to time in order to access and utilize the System (hereinafter, either individually or collectively, the "Equipment").
- EXHIBIT I 2. In order to maintain compatibility with operational and communications standards for the System: (i) all Equipment must be approved by ABCR prior to installation by Licensee and
571139240.7 I-7
BUDGET FDD
- (ii) during the term of this Agreement, Licensee may only use Equipment which is on ABCR's list of approved Equipment. Schedule 1 to the Wizard System Network Access Addendum contains a listing of approved Equipment for Internet connectivity. Schedule D hereto contains the currently approved Equipment for MPLS and Aruba/DSL Connectivity.
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- All Equipment will be maintained and operated in accordance with System standards and published vendor communication specifications approved by ABCR. If Licensee uses Equipment which has not been approved by ABCR or fails to install, maintain and operate Equipment as provided herein, Licensee will be responsible for any resulting damage or expense incurred by ABCR and other users of the System, ABCR will have no obligation to perform under this Agreement and at ABCR's request, Licensee will, at its expense, correct any nonconformity as specified by ABCR.
EQUIPMENT INSTALLATION
- Site Preparation.
Licensee will be responsible, at its own expense, to prepare each site where Equipment is to be installed in accordance with site preparation guidelines to be furnished by ABCR.
2. ABCR Assistance.
ABCR acknowledges that Licensee may require ABCR's cooperation and/or assistance during periods of acquisition and installation of Equipment.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee can be held responsible for damages or expenses incurred by ABCR (the provider of the Budget reservation system) and other system users under specific circumstances related to equipment use and maintenance. These circumstances primarily involve non-compliance with ABCR's equipment standards and security protocols.
Specifically, if a Budget licensee uses equipment that has not been approved by ABCR, or if they fail to install, maintain, and operate the equipment according to the prescribed System standards and vendor specifications, they will be liable for any resulting damage or expenses. This responsibility extends to ensuring that the licensee's equipment and communication systems comply with all applicable standards, including PCI compliance. Failure to maintain these standards can lead to a material breach of the Rental System Agreement and the License Agreement, resulting in the licensee being responsible for any resulting damage or expense incurred by ABCR and the System.
Furthermore, the Budget licensee is responsible for any damage suffered by ABCR and/or the System resulting from unauthorized access, use, or code/file transmission from the licensee's equipment, especially during periods when the mandated security controls are not in place. This responsibility also covers the actions of all authorized users who access the licensee's equipment, regardless of their location or means of access, as well as unauthorized users who gain access due to the licensee's intentional or negligent acts. Therefore, it is crucial for Budget franchisees to adhere strictly to ABCR's equipment guidelines and security measures to avoid potential liabilities for damages or expenses incurred by the system and its users.