Are Washington franchisees required to sign the Acknowledgement of the License Agreement for a Budget franchise?

According to Budget's 2025 Franchise Disclosure Document, franchisees in Washington are not required to sign the Acknowledgement of the License Agreement. The FDD explicitly states that the Acknowledgement of the License Agreement does not apply to Washington franchisees, and they should not sign it. This means that Budget franchisees in Washington are exempt from this particular requirement, which may be in place for franchisees in other states.

This exemption could be due to specific franchise laws or regulations in Washington that conflict with the standard terms of the Acknowledgement. It is not uncommon for franchise agreements to be modified by state-specific addenda to ensure compliance with local laws. These modifications can cover a range of issues, such as non-compete clauses, termination rights, and dispute resolution processes.

Prospective Budget franchisees in Washington should take note of this exemption and ensure that they do not inadvertently sign the Acknowledgement. They should also consult with a franchise attorney to understand the implications of this exemption and how it affects their rights and obligations under the License Agreement. This will help them make informed decisions and avoid potential legal issues down the line.