How does Budget allocate the Monthly Marketing Fees for advertising and promotion?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
herewith.
4.3 Attendance at Conventions/Seminars. Budget may, at its sole option, hold periodic conventions or seminars for the Network, which may include programs on sales and marketing techniques, performance specifications, advertising programs and training suggestions, among other things. Licensee's attendance at each convention or seminar is mandatory and Licensee will bear all expenses of attending, including travel, lodging, meals and entertainment.
ADVERTISING AND PROMOTION BY BUDGET
- 5.1 Monthly Marketing Fees Allocated to Advertising and Promotion. Budget will conduct such advertising and promotion, at its own expense, and in such manner and to such extent, as Budget sees fit in its sole discretion. With respect to such advertising and promotion by Budget, Budget may expend the Monthly Marketing Fees (as required in Paragraph 7.4 and the Summary Pages (Section 10(d))) for advertising and promotion (including the development and operation of the Reservation System and the development of National Accounts business, as hereinafter more fully described in Paragraphs 6.2 and 6.1, respectively) such amounts as Budget, in its sole discretion, deems appropriate and desirable.
- 5.2 Advertising and Promotion Conducted by Budget. If Budget (in its sole discretion) elects to conduct advertising and promotion for the Network (or for any part of the Network), Licensee will have no right, claim or interest of any kind in or to any Monthly Marketing Fees paid by Licensee to Budget that Budget intends to expend or expends for advertising and promotion or to any allocation of such funds, including the portion of the Reservation Fee collected by Budget from Licensee towards expenses related to the promotion of reservation channels, pursuant to Paragraph 7.5 and the Summary Pages (Section 10(e)) herein. Budget will have sole discretion over the funds and the related advertising and promotion activities, including over: (1) the creative concepts, formats, materials and endorsements used; (2) the geographic, market and media placement and allocation of programs and activities; and (3) the sources used to formulate, develop and conduct advertising and promotion. Budget's expenditures (if any) will be intended to maximize recognition of the Marks and patronage of all Rental Businesses and may be used to support experimental or test programs and programs that, in the judgment of Budget, will enhance brand awareness.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget has sole discretion in how it spends the Monthly Marketing Fees collected from franchisees. These fees can be used for advertising and promotion, including the development and operation of the Reservation System and the development of National Accounts business. The specific amounts allocated to each of these areas are determined by Budget.
Budget's advertising and promotional activities are conducted at its own expense and in a manner and to the extent it deems appropriate. Franchisees have no right, claim, or interest in how Budget allocates or spends these Monthly Marketing Fees. This includes the portion of the Reservation Fee collected by Budget from franchisees for promoting reservation channels.
Budget has complete control over the creative concepts, formats, materials, and endorsements used in its advertising and promotion. It also decides on the geographic, market, and media placement and allocation of programs and activities, as well as the sources used to develop and conduct advertising and promotion.
Budget's expenditures are intended to maximize recognition of the brand and patronage of all rental businesses. These funds may support experimental or test programs that Budget believes will enhance brand awareness. Budget is not obligated to ensure that its spending in any area is proportionate to the fees paid by franchisees in that area, nor does it guarantee that any franchisee will directly benefit from its advertising and promotion expenditures.