According to the agreement, what system functionality may a Budget licensee utilize?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ure rental rates, including tour rates, Licensee will honor the agreed to rental rates and all of the other terms of such programs. Licensee acknowledges that Budget and others will rely on such communications. Licensee will, by the execution of this Agreement, be obligated to comply with, and adhere to, all rental rates set by Budget for National Accounts, including association discounts and corporate rates but excluding tour rates; provided however, Licensee will be allowed to impose surcharges on such rates for their locations where such surcharges have been negotiated with the National Accounts or are otherwise permitted under Budget pricing policies to compete with additional suppliers of the National Accounts.
- 9.16 Computer and Other System Standards. Licensee agrees to purchase all components for, install and implement all accounting, inventory control, sales register, reservations, security programs and other computer hardware and software systems according to the Standards and as required under Paragraph 6.2 herein. Licensee understands and acknowledges that any such systems (and any modifications or additions thereto) may require the purchase, lease and/or license of equipment, including computer hardware and software programs, and the payment of licensing, maintenance or access fees to Budget, its affiliates or others for the use of such systems. Licensee will be required to install any new or modified systems within the time period specified by Budget. All computer hardware and software used by Licensee will be totally compatible with Budget's computer systems and will strictly conform to the Standards. Licensee will comply with Standards Budget develops with regard to use of websites in connection with the operation and/or promotion of Rental Business. Licensee will provide Budget or its designee 24 hour-a-day/7 day-a-week access to all information or data arising from or related to operation of the Rental Business that is utilized, stored, or contained in computer systems.
- 9.17 Inspection. So long as Licensee is not in default of any provision of this Agreement, Budget will have the right, not more than two (2) times per calendar year, after giving at least five (5) days prior written notice to Licensee, to send representatives to inspect the Rental Business, and to audit the books and records thereof, to determine the quality thereof and the faithfulness of Licensee's compliance with the provisions of this Agreement and the Standards. Once Licensee receives a notice of default under Paragraph 11.3, whether or not cured, Budget will have the right and without prior notice to Licensee, to so inspect the Rental Business and to so audit the books and records thereof, including running a credit or D&B check. Budget will bear the cost of all such inspections.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee must purchase and implement accounting, inventory control, sales register, reservations, and security programs, along with other computer hardware and software systems, according to Budget's standards. These systems may require franchisees to purchase, lease, or license equipment and pay licensing, maintenance, or access fees to Budget, its affiliates, or other parties. Licensees must install any new or modified systems within the timeframe specified by Budget, ensuring all computer hardware and software is fully compatible with Budget's systems and adheres strictly to the established standards.
Budget also develops standards for website use related to the operation and promotion of the rental business, which licensees must follow. Licensees are obligated to participate in Budget's reservation system, adhering to the terms of any rental system agreement. This includes accepting and honoring reservations received through the system and transmitting customer reservations to other network operators as required, without charging extra fees unless specified in the standards or reservation agreement.
Furthermore, Budget retains the right to mandate that licensees connect to other designated reservation systems and process all rental transactions through them. Budget can also require licensees to use rental software from specific providers in conjunction with the reservation system or any other system Budget designates. These stipulations ensure uniformity and integration across the Budget network, but also mean that franchisees must remain current with technology upgrades and changes mandated by Budget, potentially incurring ongoing costs.