Can Budget unilaterally amend existing Standards for Budget franchisees?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Licensee an Independent Contractor. Licensee is an independent contractor and is not the agent, joint venture participant, partner or employee of Budget and, except as expressly provided herein, Budget will not be obligated by any agreements, representations or warranties made by Licensee to any person, nor with respect to any other action of Licensee, nor will Budget be obligated for any damages to any person, whether caused by Licensee's action, failure to act, negligence, or willful conduct. No modification of this Agreement shall be binding upon either party unless and until the same has been made in writing and duly executed by both parties. Notwithstanding the preceding sentence, Licensee understands and agrees that Budget may unilaterally issue new (or amend or modify existing) Standards, operating procedures, policies and guidelines in the Manual pertaining to the System.
- (b) Budget Does Not Control Licensee. Budget does not reserve any control over Licensee or any of its owners, officers or employees, except as herein provided with reference to the requirement that Licensee comply with the provisions of this Agreement and the Standards, nor will Budget have any control over the employment, discharge, compensation or working conditions of any owner, director or employee of Licensee.
- EXHIBIT H 14.4 Cross Defaults. Licensee agrees that its compliance with the terms of all airport concession agreements, voluntary participation agreements and other agreements signed by Licensee with Budget, including other license agreements, Programs (whether signed agreements
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget has the right to unilaterally issue new, amend, or modify existing Standards, operating procedures, policies, and guidelines in the Manual pertaining to the System. This means that as a Budget franchisee, you must adhere to any changes Budget makes to its operational guidelines.
This clause gives Budget significant control over the operation of the franchise. While the Licensee is an independent contractor, they must still comply with the Standards set by Budget. These standards and programs, as modified, are incorporated into the agreement.
For a prospective franchisee, this means that the rules and requirements of the franchise can change during the term of the agreement. It is important to understand that while the initial agreement cannot be modified without written consent from both parties, Budget can change the Standards, operating procedures, policies and guidelines in the Manual pertaining to the System unilaterally. Franchisees should stay informed of any updates to these Standards and understand how they may impact their business operations.