Under what circumstances can a party seek equitable relief, such as injunctive relief or specific performance, related to the agreement with Budget?

According to Budget's 2025 Franchise Disclosure Document, any party to the agreement can seek equitable relief, including injunctive relief or specific performance, for actual or threatened violations or non-performance of the agreement by another party. This right to seek equitable relief is in addition to any other legal rights or remedies available under the law or other agreements between the parties.

For a prospective Budget franchisee, this means that both Budget and the franchisee have the right to ask a court to order the other party to take specific actions to comply with the franchise agreement, or to stop them from violating the agreement. Injunctive relief could be used, for example, to prevent a franchisee from operating outside of their designated territory, or to stop Budget from unfairly terminating the franchise agreement. Specific performance could be used to force a party to fulfill a contractual obligation, such as transferring property or providing agreed-upon services.

The FDD also specifies that the prevailing party in any such legal action is entitled to recover their legal fees, court costs, and litigation expenses. This provision aims to ensure that parties are not deterred from pursuing legitimate claims due to the potential financial burden of litigation. However, it also means that a party considering legal action should carefully assess the merits of their case, as they could be responsible for the other party's legal costs if they do not prevail.

Budget's right to seek injunctive relief is further emphasized in the context of non-competition. The agreement states that Budget may seek temporary and permanent injunctions against a franchisee's breach of non-competition provisions, without prior notice to the extent that applicable notice requirements may be waived. In such cases, the franchisee agrees that Budget may seek an amount equal to the aggregate of Budget's costs of obtaining injunctive relief, including investigation costs, proof of facts, court costs, and attorney's fees.