Does Budget have control over the employment, discharge, compensation, or working conditions of any owner, director, or employee of a Budget licensee?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Budget Does Not Control Licensee. Budget does not reserve any control over Licensee or any of its owners, officers or employees, except as herein provided with reference to the requirement that Licensee comply with the provisions of this Agreement and the Standards, nor will Budget have any control over the employment, discharge, compensation or working conditions of any owner, director or employee of Licensee.
Licensee will employ on a full-time basis at least one (1) General Manager who has completed the instruction furnished by Budget to Budget's satisfaction and who will devote his or her entire time during normal business hours to the management, operation and development of the Rental Business.
Licensee will notify Budget of any proposed change in its General Manager.
Any replacement General Manager must complete the instruction Budget prescribes to Budget's satisfaction.
No person may be employed as the General Manager unless such person will have completed the instruction furnished by Budget to Budget's satisfaction.
Licensee shall notify Budget of the names and addresses of all of Licensee's officers, directors and managers.
Licensee shall notify Budget immediately in the event changes in any such positions occur, including providing Budget with organizational documents executed to effect or approve such change, as set forth in Exhibit G.
Budget reserves the right to periodically run criminal background checks and credit checks on any of Licensee's officers, directors and managers, including at the time of renewal.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget does not reserve control over a licensee or their personnel, except for ensuring compliance with the franchise agreement and standards. Specifically, Budget does not have control over the employment, discharge, compensation, or working conditions of any owner, director, or employee of the licensee.
However, Budget does require that a licensee employ a General Manager who has completed Budget's training program to Budget's satisfaction. The licensee must notify Budget of any proposed changes to this position, and any replacement General Manager must also complete Budget's prescribed training. Budget also requires notification of the names and addresses of all officers, directors, and managers, and must be notified immediately of any changes to these positions. Budget also reserves the right to conduct background and credit checks on these individuals, including at the time of renewal.
While Budget does not directly control employment terms, these stipulations allow Budget to maintain standards and protect its brand by ensuring that key personnel meet their requirements and are subject to their approval. This is a common practice in franchising, where franchisors set standards for key personnel to protect brand reputation and operational consistency, without directly managing employment decisions.