What is the additional fee for each 5,000 population increment over 50,000 in a Budget territory?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
cy information is required to be disclosed in this Item.
ITEM 5 INITIAL FEES
When you sign the Budget License Agreement, you must pay Budget fees (the "Initial License Purchase Fee") based on the population of the territory covered by that agreement. The Initial License Purchase Fees are not uniform. Budget calculates the Initial License Purchase Fee as follows:
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- $45,000 for a territory with a population of 50,000 people (or under), plus
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- an additional $5,000 for each 5,000 population increment over 50,000 people.
Population is determined by using figures reported by the United States Census Bureau and updated regularly by a consulting company.
Budget reserves the right to waive or charge Initial License Purchase Fees greater or less than that specified above based on a variety of factors, including certain characteristics of your territory (for example, the existence of an airport, resort, large hotel, university, or other prime commercial rental location; whether you are converting an existing business; and the level of competition in your territory). Initi
Source: Item 5 — INITIAL FEES (FDD page 16)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the initial license purchase fee is determined by the population within the territory covered by the agreement. The initial fee is not uniform and is calculated with a base fee of $45,000 for a territory with a population of 50,000 or less.
For each additional increment of 5,000 people over the initial 50,000, Budget charges an additional $5,000. For example, the FDD notes that an initial license purchase fee is $50,000 based on a population of 55,000.
This fee structure means that a prospective Budget franchisee needs to carefully evaluate the population of their desired territory, as it directly impacts the initial investment required. The population figures are determined using data from the United States Census Bureau, updated regularly by a consulting company. Budget retains the right to adjust the initial license purchase fees based on various factors related to the territory, such as the presence of an airport, resort, or other commercial rental locations, whether the franchisee is converting an existing business, and the level of competition in the area. These fees are non-refundable under any circumstances.