Under what condition related to renewal or transfer will a release not apply for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Any release required as a condition of transfer/assignment will not apply to the extent prohibited by the Minnesota Franchises Law.
MARYLAND
-
- The following language is added to the "Summary" section of Item 17(c), entitled Requirements for you to renew or extend, and Item 17(m), entitled Conditions for Budget's approval of transfer, in the Budget License Agreement chart of Item 17:
- "Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law."
-
- Notwithstanding anything to the contrary set forth in the Franchise Agreement, and in particular Sections 11.1 and 12.2 thereof, any general release the Licensee is required to assent to shall not apply to any liability Budget may have under the North Dakota Franchise Investment Law.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a release required as a condition of transfer or assignment will not apply to the extent prohibited by the Minnesota Franchises Law. This means that if Minnesota law restricts the use of releases in franchise agreements, any release Budget requires during a transfer or assignment will be limited by those restrictions. This protects franchisees in Minnesota from waiving rights that are protected by state law.
Similarly, in Maryland, any release required as a condition of renewal or transfer will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This provision ensures that franchisees in Maryland cannot be forced to waive rights granted to them under Maryland's franchise laws when renewing their franchise agreement or transferring it to another party.
In North Dakota, any general release the Licensee is required to assent to shall not apply to any liability Budget may have under the North Dakota Franchise Investment Law. This ensures that Budget franchisees in North Dakota retain their rights and protections under the state's franchise investment law, regardless of any general release they might be asked to sign. This prevents Budget from using a general release to avoid liabilities under North Dakota franchise law.