What agreement must a Budget franchisee execute with ABCR, according to the Budget FDD?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget requires you to execute the Rental System Agreement with ABCR, which agreement provides for all reservation and back office functionalities to your Budget Franchise. Under the Rental System Agreement you must buy certain hardware, software, and communications utilized in connecting to Wizard only from Approved Suppliers (see Item 11). In connection with a Thin Client infrastructure providing you with PCI compliant access to the Wizard System, the Thin Client Terminals must be purchased from an Approved Supplier through ABCR. The fee collected from you is forwarded to the supplier. (Schedule B to the Rental System Agreement and Schedule 4 of the Administrative Services Addendum). Additionally, the Site Surveys must be purchased only from Approved Suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–34)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a franchisee is required to execute the Rental System Agreement with ABCR. This agreement is essential for providing reservation and back-office functionalities to the Budget franchise. ABCR administers the Wizard System, which is the exclusive reservation and rental system service provider for Budget franchises.
Under the Rental System Agreement, franchisees are obligated to purchase specific hardware, software, and communications equipment necessary for connecting to Wizard, but only from approved suppliers. Furthermore, franchisees must acquire Thin Client Terminals through ABCR from an approved supplier for PCI compliant access to the Wizard System. The fees collected for these terminals are then forwarded to the supplier. The agreement also stipulates that site surveys must be purchased from approved suppliers.
These requirements ensure that all Budget franchises utilize a standardized system for reservations and back-office operations, maintaining uniformity across the network. The Rental System Agreement and its associated schedules, such as Schedule B and Schedule 4 of the Administrative Services Addendum, outline the specific terms and conditions related to these services and purchases. This standardization helps Budget maintain quality control and consistency in its services, which is a common practice in franchising to protect brand reputation and customer experience.