Under what circumstances will a party NOT be liable for disclosing confidential information related to the Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Neither party will be liable for disclosure to others of any such information or data if the same or similar information or data (i) was in the public domain at the time it was disclosed to others; (ii) was known and can be shown to have been known to the party receiving it at the time it was received; (iii) is disclosed inadvertently despite the exercise of the same measure of care as the disclosing party takes to preserve or safeguard its own proprietary or confidential information or data, but in no event less than ordinary care; or (iv) is disclosed to others with the prior written consent of the other party.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, there are specific circumstances under which neither party will be held liable for disclosing confidential information or data. This protection applies if the information was already publicly available at the time of disclosure, or if it was already known to the receiving party when they received it.
Additionally, a party is not liable if the disclosure occurs inadvertently, provided they exercised the same level of care in safeguarding the information as they would with their own proprietary data, using at least ordinary care. Finally, disclosure is permitted without liability if it is done with the prior written consent of the other party.
For a prospective Budget franchisee, this means that certain information about the franchise that is already in the public domain, or that you already know, is not subject to confidentiality restrictions. It also provides some protection against accidental disclosures, as long as reasonable care is taken to protect confidential information. However, it is crucial to obtain written consent from Budget before disclosing any information you've learned through the franchise relationship, unless it falls under the other exceptions.