Under what conditions regarding residency and location of the Budget franchise is the Rider effective?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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| ("PROSPECTIVE LICENSEE"). | , an |
| ( PROSPECTIVE LICENSEE ). | |
| certain "Confidentiality Agreement" date has been executed concurrently with the forms part of the Confidentiality Agr (a) PROSPECTIVE LICENSEE is a resident that PROSPECTIVE LICENSEE BUDGET will be located within the State respect to the License Agreement occurred of this Rider shall be effective only to | and PROSPECTIVE LICENSEE are parties to that ed, 20 that execution of this Rider. This Rider is annexed to and reement. This Rider is being executed because dent of the State of Maryland; and/or (b) the Budget EE will operate if it signs a License Agreement with te of Maryland and the offering or sales activity with d or will occur in the State of Maryland. Each provision the extent, with respect to such provision, that the and Franchise Disclosure Act are met independently |
| 2. Law and Jurisdiction. Pain its entirety and replaced with the follow | aragraph 7 of the Confidentiality Agreement is deleted ving language: |
| or requiring the application of the under the Maryland Franchise R Maryland law provides that a fran | ction or venue to a forum outside of Maryland e laws of another state is void for claims arising Registration and Disclosure Law, as amended. Inchisee may sue in Maryland for certain claims anchise Registration and Disclosure Law, as PROSPECTIVE LICENSEE |
| By: Its: | |
| Accepted and Acknowledged: | |
| BUDGET RENT A CAR SYSTEM, IN | C. |
| D | |
| By: | - |
| Its: | - |
RIDER TO BUDGET RENT A CAR SYSTEM LICENSE AGREEMENT REQUIRED BY THE STATE OF MARYLAND
| This Rider is made and entered into this day of , 20 , | |
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| by and between Budget Rent A Car System, Inc., a Delaware corporation ("Budget"), and | |
| d/b/a Budget Rent A Car of | |
| ("Licensee"). |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the effectiveness of the Rider is contingent upon specific conditions related to the franchisee's residency and the franchise location, varying by state. For franchisees in Illinois, the Rider is effective if the franchisee is a resident of Illinois, or if the Budget franchise they operate is located within Illinois, and if the offering or sales activity occurred or will occur in Illinois. The jurisdictional requirements of the Illinois Franchise Disclosure Act must also be met independently, without relying on the Rider itself.
For franchisees operating in Minnesota, the Rider's provisions are effective only to the extent that the jurisdictional requirements of the Minnesota Franchise Act and its regulations are met independently, without reference to the Rider. Similarly, for New York, the Rider is effective if the Budget franchise is located within New York and the franchisee is a resident of New York, or if any offering or sales activity related to the franchise occurred in New York. As with Illinois and Minnesota, the jurisdictional requirements of New York franchise disclosure law must be met independently.
In essence, these Riders serve to ensure compliance with state-specific franchise laws. The effectiveness of each provision within the Rider is dependent on meeting the individual jurisdictional requirements of the respective state's franchise laws, independently of the Rider itself. This means that a prospective Budget franchisee needs to be aware of and comply with the franchise laws of the state in which they reside and where their franchise will be located to ensure the Rider's provisions are fully effective.