Under what conditions can Budget waive an obligation of the Budget licensee?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6 Waiver.
Budget and Licensee may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or any other effective date stated in the notice of waiver.
Any waiver a party hereto grants will be without prejudice to any other rights it may have, will be subject to its continuing review and may be revoked, in its sole discretion, at any time and for any reason, effective upon delivery to the other party hereto of ten (10) days' prior written notice.
Failure by Budget and/or the Related Entities on the one hand or Licensee on the other, to either enforce any breach or default or series of breaches or defaults in performance by the other; or to exercise any right, power or option given to Budget and/or its Related Entities on the one hand or Licensee on the other hereunder; or to insist upon strict compliance with or performance of the other party's obligations under this Agreement, the Standards (if applicable) or related agreements will not in any event constitute a waiver by Budget and/or the Related Entities on the one hand or Licensee on the other, of the provisions of this Agreement, the Standards (if applicable) or related agreements with respect to any such breach or default, or subsequent breach or default, or Budget's and/or the Related Entities' right on the one hand or Licensee's right on the other at any time thereafter to require exact and strict compliance with the provisions thereof.
No special or restrictive legend on any check or similar item given to a party hereto by the other party hereto, will constitute a waiver, compromise, settlement, "payment in full" or accord and satisfaction.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget can waive or reduce any obligation or restriction upon the licensee under the franchise agreement. This waiver must be made through a written instrument. The waiver becomes effective upon delivery of written notice to the licensee or on any other effective date stated in the notice of waiver.
However, any waiver granted by Budget is not indefinite. Budget retains the right to review the waiver continuously and can revoke it at any time, for any reason, at its sole discretion. To revoke a waiver, Budget must deliver a ten (10) days' prior written notice to the licensee.
It is important to note that Budget's failure to enforce any breach or default by the licensee, or to exercise any right or option under the agreement, does not constitute a waiver of those provisions. This means Budget can still enforce these provisions in the future, even if they have not been enforced in the past. Similarly, any special or restrictive legend on a check or similar item will not be considered a waiver, compromise, or settlement.