Under what conditions can the Budget franchise agreement be amended or modified?
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, the franchise agreement can only be amended or modified if the changes are put in writing and signed by both Budget and the franchisee. This requirement ensures that both parties are fully aware of and agree to any changes to the original agreement, preventing misunderstandings or disputes down the line. This protects both Budget and the franchisee.
This clause is standard in franchise agreements. It provides a level of certainty and legal protection for both parties. Oral agreements or understandings are not considered valid, so franchisees must ensure that any negotiated changes are documented and formally executed.
Prospective Budget franchisees should pay close attention to this provision. It is crucial to understand that any promises or representations made by Budget representatives during the negotiation phase are not binding unless they are explicitly included in the written franchise agreement or a written amendment to it. Franchisees should seek legal counsel to review the franchise agreement and any proposed amendments before signing to ensure their interests are protected.