Within the 10-year period preceding the application for registration, have any parties associated with Budget been convicted of or pleaded nolo contendere to a misdemeanor charge alleging violation of a franchise, antitrust, or securities law; fraud, embezzlement, fraudulent conversion, or misappropriation of property; or unfair or deceptive practices?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
"Except for the litigation disclosed in Item 3, with regard to Budget, its predecessor or predecessors, and the persons identified in Item 2 or an affiliate offering franchise under Budget's principal trademark:
- B. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or been held liable in a civil action alleging: violation of a franchise, antitrust or securities law; fraud, embezzlement, fraudulent conversion, or misappropriation of property; or unfair or deceptive practices; or comparable allegations.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to the 2025 FDD, Budget states that, with the exception of litigation disclosed in Item 3, neither Budget, its predecessors, nor individuals identified in Item 2, or an affiliate offering franchises under Budget's principal trademark, have faced convictions or nolo contendere pleas for misdemeanor charges related to franchise, antitrust, or securities laws; fraud, embezzlement, fraudulent conversion, or misappropriation of property; or unfair or deceptive practices within the 10-year period before the franchise registration application.
This statement assures prospective franchisees that Budget and its associated parties have not had any recent legal issues related to unethical or illegal business practices that are commonly regulated by franchise, antitrust, and securities laws. This absence of convictions or pleas can be seen as a positive indicator of the company's integrity and adherence to legal standards.
It is important to note that this statement is qualified by the litigation disclosed in Item 3 of the FDD. A prospective franchisee should carefully review Item 3 to understand the nature and potential impact of any disclosed litigation. Additionally, the statement only covers the 10-year period preceding the application for registration, so any older legal issues would not be covered by this specific disclosure.