Under what conditions will the Budget Addendum terminate if the Licensee's Rental System Agreement is terminated?

According to Budget's 2025 Franchise Disclosure Document, the Addendum to the Rental System Agreement will terminate immediately if the Rental System Agreement is terminated. This termination occurs without any prior notice to the franchisee. The termination can be initiated either by ABCR (Avis Budget Car Rental, LLC) or the franchisee (Licensee), or their respective successors or assigns, or by operation of law.

This provision means that a Budget franchisee's rights and obligations under the Addendum cease the moment the Rental System Agreement ends. This could have significant implications for the franchisee's business operations, particularly concerning access to specialized computer services available through Wizard, as described in the FDD.

It is important for a prospective Budget franchisee to understand the conditions under which the Rental System Agreement can be terminated, as this will directly impact the Addendum. The franchisee should carefully review the Rental System Agreement to identify potential termination triggers and assess the risk this poses to their business. Understanding these conditions is crucial for making an informed decision about investing in a Budget franchise.