According to Budget's FDD, what is the definition of a 'Converted Car'?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee shall be exclusively licensed by Budget to use the System and the Marks to conduct a Rental Business offering for rental the types of vehicles designed primarily for transporting passengers, including sport utility vehicles ("SUVs") of any size, crossovers, passenger vans of any occupancy and smaller than medium duty pick-up trucks. (collectively, the "Vehicles"). In executing this Agreement, Licensee shall operate the Rental Business in conformity with the Standards, to strictly comply with the provisions of this Agreement and conduct the Rental Business ethically, honestly and fairly. Licensee will not conduct the Rental Business in a manner, which may discredit or impair the value of the Rental Business, the System or the Marks. As an inducement to Budget's entering into this Agreement, Licensee represents to Budget that all information set forth in any and all applications, financial statements and submissions to Budget is true, complete and accurate in all respects and that there have been no misrepresentations or omissions in any application, statement or submission to Budget.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
Based on the 2025 Budget Franchise Disclosure Document excerpts, there is no definition of 'Converted Car'. The excerpts discuss various aspects of the Budget franchise agreement, including transfer requirements, revenue definitions, payment methods, and vehicle types. However, the term 'Converted Car' is not explicitly defined within these sections.
As a prospective franchisee, understanding the specific types of vehicles permitted and any restrictions on vehicle modifications is crucial. The agreement does mention 'Vehicles' as those 'designed primarily for transporting passengers, including sport utility vehicles ('SUVs') of any size, crossovers, passenger vans of any occupancy and smaller than medium duty pick-up trucks.' However, this does not clarify whether vehicles can be converted or modified for specific purposes within the rental fleet.
Therefore, it is recommended that a potential Budget franchisee directly inquire with the franchisor about the definition of 'Converted Car' and whether such vehicles are permitted or restricted under the franchise agreement. This clarification will help in making informed decisions about fleet management and operational compliance.