What article outlines Budget's requirements for pre-opening instruction?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Pre-opening Instruction. Prior to the opening of the Rental Business (or commencement of operations as a result of a transfer), Budget will furnish, and the General Manager (as described in Paragraph 9.1 and the Summary Pages (Section 5)) and such other employees of Licensee as are approved by Budget will attend and complete a comprehensive training program for the operation of a Rental Business, and any additional required courses, to Budget's satisfaction. The instruction will be furnished at the time and place and in such manner as designated by Budget. Should travel be required, Licensee will pay all travel and living expenses incurred by the General Manager and any of its other employees receiving the instruction.
- 4.2 Operating Assistance and Training; Correcting Deficiencies. Budget provides a comprehensive training program and provides additional courses, resources, webinars and training materials to assist Licensee in the training of its General Manager and employees in the operation of the Rental Business. Budget reserves the right to require Licensee to attend training, as it deems necessary and in its sole discretion, and Licensee shall be required to complete any initial training subject to the terms of this Paragraph 4.2. Budget will furnish to Licensee such operating training and assistance through regular notices and announcements concerning System developments on a continuing basis, as in Budget's judgment is reasonably necessary. All training may require, at Budget's sole discretion, the attendance and participation of Licensee, its principals, its General Manager, managerial personnel or other staff of the Rental Business. Licensee will bear all expenses associated with such training programs, including travel, lodging, meals and entertainment, if any. All training must be properly attended and/or completed timely and to Budget's satisfaction. Licensee will cooperate with Budget and its representatives in connection with all training and assistance provided by Budget and will promptly undertake to correct any deficiencies brought to Licensee's attention in connection therewith. If Licensee fails to correct any such deficiencies within the time Budget prescribes, then Budget may (but is not required to) correct, or cause the correction of, such deficiencies and Licensee will reimburse Budget for the reasonable costs and expenses it incurs in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Paragraph 4.1 outlines the requirements for pre-opening instruction. Prior to opening a rental business, the General Manager and other approved employees must attend and complete Budget's comprehensive training program. This training covers the operation of a rental business and any additional required courses, all to Budget's satisfaction. The training's time, place, and manner are designated by Budget.
Prospective Budget franchisees should note that they are responsible for covering all travel and living expenses incurred by the General Manager and any other employees attending the pre-opening instruction. This could represent a significant upfront cost in addition to the franchise fee and other initial investments.
Budget also provides ongoing operating assistance and training through additional courses, resources, webinars, and training materials. Budget retains the right to require franchisees to attend further training as deemed necessary, with the franchisee bearing all associated expenses, including travel, lodging, and meals. This ongoing training is designed to assist the franchisee and their employees in the continued successful operation of the Budget rental business.