What is the composition of the Mediation Committee responsible for resolving disputes that cannot be settled between Budget Operators regarding a Foreign Vehicle?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
If a dispute arises regarding a Foreign Vehicle, the Operators making and receiving the claim will act in good faith and use best efforts to try to resolve the dispute within thirty (30) days after the claim is presented. A Mediation Committee will be responsible for resolving disputes that cannot be settled between Operators. This Committee will consist of one Corporate Licensee Department member, one Licensee Association Officer, and one Licensee member who is not involved in the dispute. The Licensee member chosen to help mediate the dispute must be agreed upon by both Corporate and the Licensee Association officer. The decision of the Mediation Committee regarding the dispute will be final and binding upon all parties involved. Upon receipt of notice of a dispute by the Mediation Committee, the Mediation Committee will notify all interested parties. Operators will supply the Mediation Committee with all relevant facts and documentation within fifteen (15) days of a written request and shall agree to mediate the dispute within thirty (30) days thereafter. Throughout the Mediation process, the applicable Operators will continue to act in good faith and use best efforts to resolve the dispute.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a Mediation Committee is responsible for resolving disputes regarding a Foreign Vehicle that cannot be settled between Budget Operators. This committee is composed of three members. One member must be a Corporate Licensee Department member. Another member must be a Licensee Association Officer. The third member must be a Budget Licensee who is not involved in the specific dispute.
The Licensee member of the Mediation Committee must be mutually agreed upon by both the Corporate Licensee Department member and the Licensee Association Officer. This requirement ensures that the selected Licensee member is impartial and acceptable to both sides of the dispute. The decisions made by this Mediation Committee are considered final and binding on all parties involved, emphasizing the importance of a fair and well-considered resolution process.
Upon the Mediation Committee receiving notice of a dispute, they are required to notify all interested parties. The involved Budget Operators must then supply the Mediation Committee with all relevant facts and documentation within fifteen days of a written request. Following the submission of information, the Operators must agree to mediate the dispute within thirty days. This structured timeline ensures that disputes are addressed promptly and efficiently. Throughout the mediation process, all applicable Budget Operators are expected to continue acting in good faith and making their best efforts to resolve the dispute amicably.