Under what conditions can the Budget franchise agreement be amended?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Entire Agreement; Representations and Amendments.
- (c) Amendments. No amendment or other modification of this Agreement will be valid or binding on either party hereto unless reduced to writing and executed by the parties hereto.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, amendments or modifications to the franchise agreement must be in writing and executed by both parties to be considered valid and binding. This requirement ensures that any changes to the original agreement are formally documented and agreed upon by both Budget and the franchisee, preventing misunderstandings or disputes based on oral agreements or informal communications. This protects both parties by providing a clear record of any agreed-upon changes.
This clause emphasizes the importance of written documentation in franchise agreements. It prevents either party from later claiming that an undocumented change was agreed upon. This is a standard practice in franchising to maintain clarity and avoid potential legal issues.
Prospective Budget franchisees should be aware that any desired changes to the franchise agreement must be formally documented and signed by both themselves and Budget. They should not rely on verbal agreements or assumptions, as these will not be legally binding. This requirement ensures that all modifications are made with mutual consent and properly recorded, providing a solid legal basis for the franchise relationship.