What is the amount of the renewal fee for a Budget franchise, and when is it due?

According to Budget's 2025 Franchise Disclosure Document, the renewal fee for a Budget franchise is $2,500. This fee is due upon renewal of the franchise agreement. This means that when a franchisee decides to extend their franchise agreement for another term, they will be required to pay Budget $2,500 at the time of renewal.

Franchise agreements typically have a set term, and renewal is not automatic. The franchisee must apply for a renewal, and the franchisor has the right to approve or deny the renewal based on factors such as the franchisee's compliance with the franchise agreement and the brand's standards. Therefore, franchisees should factor this renewal fee into their long-term financial planning if they anticipate continuing their Budget franchise beyond the initial term.

It is important for prospective franchisees to understand all the costs associated with owning a franchise, including renewal fees. This fee, while seemingly small compared to the initial franchise fee or ongoing royalties, can still impact the franchisee's profitability, especially if the business experiences financial difficulties. Franchisees should also inquire about any conditions or requirements for renewal to ensure they are eligible when the time comes.