Under what conditions does Budget have power of attorney to act on behalf of the licensee?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee, in order to secure the performance of Licensee's obligations under this Agreement, hereby irrevocably appoints Budget as its attorney for the limited purposes of executing, signing, perfecting, doing and (if required) registering every such further assurance, document, act or thing as is required to (a) cause discontinuation of Licensee's use of the Marks (or any other related or similar name or use hereunder) and (b) transfer to Budget or its designee, all telephone numbers, facsimile/electronic communication lines, electronic addresses and domain names used by it in the conduct of the Rental Business and airport licenses, concession agreements, leases and permits as specified in Paragraph 8.2, following the termination of this Agreement for any reason.
The exercise by Budget of such power will be conclusive evidence of its right to exercise the same.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, as part of the license agreement, the licensee irrevocably appoints Budget as their attorney for specific, limited purposes. This appointment is made to ensure the licensee fulfills their obligations under the agreement.
Budget's power of attorney is limited to actions required to (a) discontinue the licensee's use of Budget's trademarks or any similar names and (b) transfer specific assets to Budget or its designee following the termination of the license agreement for any reason. These assets include telephone numbers, communication lines, electronic addresses, domain names used in the rental business, and airport licenses, concession agreements, leases, and permits as outlined in Paragraph 8.2 of the agreement.
The FDD states that Budget's exercise of this power of attorney will be considered conclusive evidence of their right to do so. This means that Budget does not need to seek additional approval or provide further justification when acting under this power of attorney, provided it falls within the specified purposes. This clause is designed to protect Budget's brand and ensure a smooth transition of assets upon termination of the franchise agreement.