Under what circumstances is the Rider to the Rental System Agreement signed for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
d of Paragraph 11.1 of the | | | License Agreement: | | | "However, notwithstanding such release, to the extent required by applicable | | | law, all rights Licensee enjoys and any causes of action arising in Licensee's favor | | | from the provisions of Article 33 of the General Business Law of the State of New | | | York and the regulations issued thereunder shall remain in force; it being the intent | | | of the proviso that the non-waiver provisions of General Business Law 687 and | | | 687.5 be satisfied." | | | 3. | | | Sale, Assignment, and Transfer by Budget. The following language is | | | added at the end of Paragraph 12.1 of the License Agreement: | | | "However, to the extent required by applicable law, no assignment will be made | | | except to an assignee who, in Budget's good faith judgment, is willing and able | | | to assume Budget's obligations under this Agreement." | | | 4. | | | Indemnification of Budget by Licensee. The following language is added to | | | the end of Paragraph 13.1 of the License Agreement: | | | "To the extent required by New York law, the foregoing indemnity shall not apply | | | to liability caused by Licensee's proper reliance or use of procedures or materials | | | provided by Budget." |
- Governing Law and Jurisdiction. The following language is added to
Paragraphs 14.7 and 14.8, of the License Agreement:
"This paragraph shall not be considered a waiver of any right conferred upon Licensee by Article 33 of the General Business Law of the State of New York."
IN WITNESS WHEREOF, the parties hereto have executed and delivered this Rider on the day and year first above written.
BUDGET RENT A CAR SYSTEM, INC.
| By: Print/Type Name: Its: | |
|---|---|
| LICENSEE: | |
| By: | |
| Print/Type Name: | |
RIDER TO BUDGET RENT A CAR SYSTEM RENTAL SYSTEM AGREEMENT REQUIRED BY THE STATE OF NEW YORK
| This Rider is made and entered into as of the day of , |
|---|
| , by and between Avis Budget Car Rental, LLC (hereinafter referred to as "Avis Budget |
| 20 |
| Car Rental"), and |
| d/b/a Budget Rent A Car of |
| ("Licensee"). |
| 1. |
| Background. Avis Budget Car Rental and Licensee are parties to that certain |
| Rental |
| System Agreement dated |
| , 20 |
| (the "Rental System Agreement") |
| that has been signed concurrently with the signing of this Rider. This Rider is annexed to and |
| forms part of the Rental System Agreement. This Rider is being signed because (a) the Budget |
| Franchise that Licensee will operate under the License Agreement with Budget Rent A Car |
| System, Inc. (pursuant to which the parties are signing the Rental System Agreement) will be |
| located within the State of New York and Licensee is a resident of the State of New York; and/or |
| (b) any of the offering or sales activity with respect to that License Agreement occurred in the |
| State of New York. Each provision of this Rider will be effective only to the extent, with respect |
| to such provision, that the jurisdictional requirements of the New York franchise disclosure law |
| and its regulations are met independently without reference to this Rider. |
- Applicable Law. The following language is added to Paragraph XII of the Rental System Agreement:
"This paragraph shall not be considered a waiver of any right conferred upon Licensee by Article 33 of the General Business Law of the State of New York."
[The remainder of this page is intentionally left blank.]
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals on the date written below.
AVIS BUDGET CAR RENTAL, LLC.
| By: | |
|---|---|
| Its: | |
| Print or Type Name of Signing Officer | |
| Date: | |
| Print or Type Licensee's Corporate Name | |
| d/b/a BUDGET RENT A CAR OF | |
| By: | |
| Its: | |
| Print or Type Name of Signing Officer | |
| Date: | |
| ON BEHALF OF THE FOLLOWING RAC LOCATIONS: | |
| (Street, Address, City, State) | |
| 1. | |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. | |
| 7. | |
Mailing Address for Notice to Licensee. Attention: RETURN SIGNATURE COPY TO:
Avis Budget Car Rental, LLC. 379 Interpace Parkway Parsippany, NJ 07054 Attention: Office of General Counsel
**RIDER TO BUDGET RENT A CAR SYSTEM, INC.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Rider to the Rental System Agreement is signed under specific circumstances related to state regulations. One instance is when the Budget franchise will operate in the State of New York, and the franchisee is a resident of New York. Additionally, the Rider is required if any offering or sales activity related to the License Agreement occurred in New York. In these situations, the Rider is annexed to and forms part of the Rental System Agreement, ensuring compliance with New York franchise disclosure laws.
Another instance where the Rider is required is when the Budget franchise will be located in the State of Illinois, or the franchisee is a resident of Illinois. It is also required if any offering or sales activity related to the License Agreement occurred or will occur in Illinois. Similar to the New York Rider, this ensures compliance with the Illinois Franchise Disclosure Act.
Finally, a Rider to the License Agreement is signed when the Budget franchise will operate in the State of Minnesota, or any of the offering or sales activity related to the License Agreement occurred in Minnesota. This ensures compliance with the Minnesota Franchise Act and its regulations. Each provision of these Riders is effective only to the extent that the jurisdictional requirements of the respective state's franchise laws are met independently, without relying on the Rider itself.