Can Budget unilaterally issue new or modify existing standards, operating procedures, policies, and guidelines in the Manual pertaining to the System for Budget franchisees?

According to Budget's 2025 Franchise Disclosure Document, Budget has the authority to unilaterally issue new or modify existing standards, operating procedures, policies, and guidelines in the Manual pertaining to the System. This means that Budget can make changes to the rules and guidelines outlined in the Manual without needing the franchisee's consent.

This ability allows Budget to adapt the System to changing market conditions, consumer preferences, or to maintain the efficiency and profitability of the franchise network. These modifications become effective 30 days after written notice to the franchisee, unless a longer period is specified in the notice. The franchisee is then obligated to promptly accept and implement these changes at their own expense, following the schedule set by Budget.

The Manual, which contains these standards and procedures, is considered confidential and remains Budget's exclusive property. Franchisees are granted access to the Manual during the term of their agreement, and it is an integral part of the franchise agreement. In case of any dispute regarding the contents of the Manual, the master copies maintained by Budget will be considered controlling.

This unilateral modification right is a common practice in franchising, allowing franchisors to maintain consistency and adapt to evolving business environments. However, it also places a responsibility on the franchisee to stay informed of these changes and to invest in implementing them, which could impact their operational costs and business practices.