Under what condition regarding termination length would a paragraph in an order be affected for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
IT IS FURTHER ORDERED that this order will terminate on June 17, 2016, or twenty years from the most recent date that the United States or the Federal trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:
- A. Any paragraph in this order that terminates in less than twenty years; and
- B. This order if the complaint is filed after the order has terminated pursuant to this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a paragraph in a termination order would be affected if it terminates in less than twenty years. Specifically, the document states that the order will terminate on June 17, 2016, or twenty years from the most recent date that the United States or the Federal Trade Commission files a complaint alleging any violation of the order, whichever comes later. However, this general termination date does not affect any individual paragraph within the order that is set to terminate in less than twenty years.
This means that even if a new complaint extends the overall order's termination date, any specific paragraph with a shorter pre-defined termination period will still expire as originally scheduled. This condition ensures that shorter-term requirements or restrictions within the order are not automatically extended by subsequent legal actions.
For a prospective Budget franchisee, this detail is relevant in understanding the potential longevity and impact of specific compliance requirements outlined in the order. It clarifies that certain obligations may have a fixed lifespan regardless of broader legal challenges or extensions affecting the overall order.