Under what conditions can the Budget License Agreement be modified?

According to Budget's 2025 Franchise Disclosure Document, the Budget License Agreement can only be modified if the changes are documented in writing and signed by both the franchisee and Budget. However, the document also specifies that the Manual and Standards are subject to change, implying that Budget can unilaterally modify these operational guidelines.

This condition is important for prospective franchisees because it means that while the core terms of the License Agreement are protected and require mutual consent to change, Budget retains the flexibility to update its operational procedures and standards as needed. Franchisees must stay informed of changes to the Manual and Standards, as these changes are binding even without the franchisee's explicit signature.

This type of clause is relatively standard in franchising. Franchisors need the ability to adapt their systems to changing market conditions, new technologies, and evolving consumer preferences. However, franchisees should be aware of the scope of these potential changes and how they might impact their day-to-day operations and profitability. It would be prudent for a prospective Budget franchisee to discuss with existing franchisees how Budget has historically managed changes to the Manual and Standards.