What classes of vehicles are Budget franchisees prohibited from renting?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The Budget License Agreement limits the class of vehicles your Budget Franchise may rent (for example, you may not rent trucks, which definition excludes SUVs of any size, crossovers, passenger vans of any occupancy, and smaller than medium duty pickup trucks. In addition, you may not rent motorcycles, snow mobiles, all-terrain vehicles (ATVs), bicycles, horse-drawn vehicles, or other similar vehicles under the "Budget" name without Budget's consent). The Budget License Agreement and the Standards regulate age and other standards of quality regarding the automobiles you offer for rental or sale.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 65–66)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are restricted regarding the types of vehicles they can rent. Specifically, the Budget License Agreement prohibits franchisees from renting certain classes of vehicles without Budget's consent.
Budget franchisees may not rent trucks (excluding SUVs of any size, crossovers, passenger vans of any occupancy, and smaller than medium duty pickup trucks). Additionally, franchisees are prohibited from renting motorcycles, snow mobiles, all-terrain vehicles (ATVs), bicycles, or horse-drawn vehicles under the Budget name without obtaining explicit consent from Budget.
This restriction ensures that Budget maintains a consistent brand image and service offering across all franchise locations. A prospective franchisee should carefully consider these limitations and ensure that their business plan aligns with the permitted vehicle types. It is important to note that Budget may impose further restrictions on the make or model of automobiles in the future, so franchisees must stay informed of any changes to these regulations.