What costs are franchisees responsible for when attending Budget's periodic conventions or seminars?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Periodically during the license term, Budget may add new and refresher web-based training programs and seminars and may require you and your General Manager and other managerial personnel of your Budget Franchise to satisfactorily complete these. Budget communicates the requirement to complete such web-based training programs and seminars via System Bulletins (the Budget License Agreement, paragraph 4.2). You and/or your General Manager also must attend any periodic conventions or seminars that Budget holds for the Network (the Budget License Agreement, paragraph 4.3). You must bear all of your and your personnel's cost of attending these programs, conventions, and seminars, including travel, lodging, meals, and wages.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are responsible for covering all costs associated with attending periodic conventions or seminars. This includes expenses for the franchisee and their personnel, such as the General Manager and other managerial staff.
Specifically, Budget franchisees must bear the costs of travel, lodging, meals, and wages for themselves and their personnel when attending these required programs, conventions, and seminars. This means franchisees need to budget not only for transportation and accommodation but also for the salaries of the employees attending the event, representing a potentially significant expense depending on the number of attendees and the duration of the event.
This requirement is fairly standard in the franchise industry, as franchisors often mandate training and conventions to ensure brand consistency and provide ongoing education. However, the financial burden is typically placed on the franchisee, who must factor these costs into their operating budget. Prospective Budget franchisees should consider these expenses when evaluating the overall investment and potential profitability of the franchise.