Does Budget currently charge a marketing fee to franchisees?

Budget may require that you spend $2,000 to $5,000 for grand opening promotions. Budget currently does not, but may require in the future that you spend an amount equal to 2% of the Gross Revenues of your Budget Franchise on local advertising annually. Budget has the right to review all advertising and promotional materials that you use prior to their use. Budget currently does not conduct regular reviews of each licensee's materials, but you are required to develop materials that are in good taste, are in compliance with the law, and comply with rules for Budget's Proprietary Marks and the Standards. You are not required to participate in any local or regional advertising cooperative (the Budget License Agreement, Article X).

ABCR will provide ongoing repairs, maintenance upgrades, or upgrades to Wizard as necessary. You must purchase, lease, or otherwise acquire, from sources Budget designates or approves (which might include or be limited to Budget or its affiliates), computer hardware, software and communications equipment that is totally compatible with and strictly conforms to the requirements of the Rental System Agreement as Budget may modify those requirements during the term. Budget cannot estimate the annual cost of maintenance or upgrade obligations and their associated costs. There are no contractual limitations on the frequency or cost of your obligations under this section of the Budget License Agreement.

Budget and its designees will have independent access to the Wizard system and all other computer systems, hardware, and software you use. Budget and its designees may access all information and software on such systems and there is no limitation on such access. There are no contractual limits upon our access to your computer information.

Marketing and Advertising.

Budget conducts advertising and promotion at its own expense and at its sole discretion as described in Article V of the Budget License Agreement. Budget Franchise owners do not directly contribute to such advertising and promotion**.** However, Budget Franchisees may be asked to elect to participate in various types of Marketing Programs under a Participation Agreement. Budget may, at any time, increase, decrease, or eliminate its expenditures on advertising and promotion. Budget will pay the service providers directly and you must reimburse Budget for these costs.

There is no advertising council composed of franchisees.

Budget has sole control and discretion over these expenditures and the related advertising and promotion activities, including, without limitation, the creative concepts, materials, and endorsements used, and the geographic, market, and media placement and allocation of programs and activities. Advertising may appear in any form of media, and may be local, regional, or national in scope. Budget currently utilizes both in-house advertising personnel and outside advertising agencies to assist with marketing and promotion. In addition to the marketing fund referenced above, Budget currently applies a portion of the Reservation Fee toward expenses related to the promotion of budget.com and other reservation channels. This portion of the Reservation Fee does not constitute a contribution to any advertising or marketing fund by licensees and is not separately accounted for or reported.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)