Under the Budget License Agreement, what condition fulfills Budget's obligations to the Licensee regarding reservations?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) License Agreement Obligations. Licensee acknowledges and agrees that as long as ABCR maintains the Reservation System and makes it available to Licensee in accordance with the terms of this Agreement or any substitute agreement (as amended from time to time), Budget shall have fulfilled its obligations to Licensee regarding reservations, if and to the extent such obligations arise from Licensee's License Agreement.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget fulfills its obligations to the Licensee regarding reservations if ABCR (a related entity) maintains the Reservation System and makes it available to the Licensee. This is contingent upon the terms of the License Agreement or any substitute agreement, including amendments.
This means that as long as Budget's reservation system is operational and accessible to the franchisee, Budget is meeting its responsibilities concerning reservations as outlined in the License Agreement. The franchisee is expected to utilize this system for soliciting, receiving, and transmitting reservations.
It is important for prospective Budget franchisees to understand the terms and conditions of both the License Agreement and any Reservation Agreement to fully grasp their rights and obligations related to the reservation system. Franchisees should also confirm what service levels and support are provided for the reservation system to ensure it meets their business needs.