Can Budget adjust the License Fees based on an audit?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 License Fees. Licensee will pay to Budget by the tenth (10th) of each month: License Fees for the operation of the Rental Business, and other fees associated with the Rental
Business, in the amount set forth and in the manner identified in the Summary Pages (Section 10(b)). The definition of Gross Revenue for the Rental Business is defined in Paragraph 7.10. All fees due hereunder will be documented through the Monthly System Fee Report and invoice, which Licensee will submit to Budget along with all fees due hereunder. Such fees will be subject to adjustment in accordance with the results of any audit by Budget of the records of Licensee.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the License Fees that a franchisee pays to Budget are subject to adjustments based on the results of an audit. License Fees are paid monthly by the tenth of each month for the operation of the Rental Business. These fees, along with other fees associated with the Rental Business, are detailed in the Summary Pages, Section 10(b) of the FDD.
The fees due are documented through the Monthly System Fee Report and invoice, which the franchisee submits to Budget along with the fees. The FDD specifies that these fees are subject to adjustment following an audit conducted by Budget of the franchisee's records.
This means that if Budget conducts an audit and finds discrepancies in the reported Gross Revenue or other factors affecting the License Fees, Budget can adjust the fees accordingly. This could result in the franchisee owing additional fees or receiving a credit, depending on the audit findings. It is important for prospective franchisees to maintain accurate and complete records to ensure accurate fee calculations and to be prepared for potential adjustments following an audit.