Within how many days after termination of the License Agreement or notice of default must Budget notify the Concessionaire if it elects to accept assignment of the Concession?
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;
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget has a specific timeframe to notify the Concessionaire regarding the assignment of the Concession. If the License Agreement is terminated for any reason, or if Budget receives a notice of default by the Licensee under the Concession, Budget has thirty (30) days to notify the Concessionaire in writing if it elects to accept the assignment of the Concession.
This means that a Budget franchisee (Licensee) who operates at a concession location needs to be aware that if their agreement is terminated or they default, Budget has the option to take over their interest in the concession. The Concessionaire, which is the entity granting the concession (likely an airport authority or similar), will be notified of Budget's decision within 30 days.
It is important to note that Budget's failure to accept the assignment at one instance of default does not waive their right to accept it in the future. This protects Budget's interests in maintaining operations at the concession location. If Budget does elect to accept the assignment, they will execute a concession agreement with the Concessionaire containing the same terms and conditions as the original agreement between the Concessionaire and the Licensee, but free from any existing defaults or claims between those two parties.