Under what condition can Budget revoke its acceptance of assignment of the Concession?

According to Budget's 2025 Franchise Disclosure Document, Budget has the right to revoke its acceptance of the assignment of the Concession if the Concessionaire withholds consent to any assignment or sublease to a third party requested by Budget. This refusal must be deemed unreasonable by Budget, and the sublease must be on the same terms as the original concession.

This condition protects Budget's flexibility in managing its franchise network. If Budget decides to assign its concession or sublease the premises to a third party, the Concessionaire's unreasonable refusal allows Budget to retract its acceptance of the initial assignment. This ensures Budget can optimize its operations and market presence without being unduly restricted by the Concessionaire's objections.

For a prospective Budget franchisee, this clause highlights the importance of maintaining a cooperative relationship with Budget. Unreasonably withholding consent to an assignment or sublease could lead to Budget revoking its acceptance of the concession assignment, potentially impacting the franchisee's business operations. Franchisees should carefully consider any requests from Budget for assignment or sublease and ensure their objections are well-justified and reasonable to avoid triggering this revocation clause.