Within how many days after termination or expiration of the License Agreement or Budget's receipt of any notice of default by Licensee under the Concession must Budget notify Concessionaire if Budget elects to accept assignment of the Concession for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Concessionaire hereby acknowledges that Licensee has agreed under the License Agreement that, in the event of termination, for any reason, or Licensee's default under the Concession, Licensee will, at Budget's option, assign to Budget or Budget's designee any and all interest of Licensee in the Concession, including any rights to renew the Concession or to sublease the Premises; and Concessionaire hereby consents to such assignment, subject to the following conditions:
(i) Budget will notify Concessionaire in writing within thirty (30) days after termination or expiration of the License Agreement or Budget's receipt of any notice of default by Licensee under the Concession if Budget elects to accept assignment of the Concession; Budget's failure to accept assignment of the Concession upon any default of Licensee under the Concession, will not be deemed a waiver of Budget's future right to accept such assignment in the event of any future default of Licensee;
(j) If Budget elects to accept assignment of the Concession, Budget will execute and deliver to Concessionaire a concession containing the same terms and conditions (including concession fees) as the Concession; provided, however, that Budget's concession interest will not be subject to any defaults or claims that may then exist between Concessionaire and Licensee;
(k) If Budget elects to accept assignment of the Concession, Budget will take possession of the Premises within thirty (30) days after notice of such election to Concessionaire;
(l) Nothing herein will affect Concessionaire's right to recover from Licensee any and all amounts due under the Concession or to exercise any rights of Concessionaire against Licensee as provided under the Concession, nor will Budget be responsible for Licensee's default under the Concession.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget must notify the Concessionaire in writing within thirty (30) days after the termination or expiration of the License Agreement, or from the date Budget receives notice of default by the Licensee under the Concession, if Budget chooses to accept the assignment of the Concession.
This means that if a Budget franchisee (Licensee) defaults on their agreement with a Concessionaire (such as an airport authority), or if the License Agreement ends, Budget has a 30-day window to decide whether to step in and take over the franchisee's rights to operate at that location. This protects Budget's ability to maintain a presence in key locations even if a franchisee fails or leaves the system.
If Budget decides to accept the assignment, they will then execute and deliver to the Concessionaire a concession containing the same terms and conditions (including concession fees) as the Concession. However, Budget's concession interest will not be subject to any defaults or claims that may then exist between Concessionaire and Licensee. This clause ensures that Budget can seamlessly continue operations without being penalized for the previous franchisee's issues. Budget also has 30 days after notice of such election to Concessionaire to take possession of the Premises.
It is important to note that Budget's failure to accept assignment of the Concession upon any default of Licensee under the Concession, will not be deemed a waiver of Budget's future right to accept such assignment in the event of any future default of Licensee. This means that Budget retains the right to accept assignment in the future, even if they decline to do so in a particular instance. The Concessionaire retains the right to recover any and all amounts due under the Concession or to exercise any rights of Concessionaire against Licensee as provided under the Concession, nor will Budget be responsible for Licensee's default under the Concession.