What is the Custodial City's responsibility regarding notification to the Owning City after a conversion or theft of a Budget vehicle?

According to Budget's 2025 Franchise Disclosure Document, if a Budget vehicle is converted or stolen, the Renting or Custodial City is responsible for notifying the Owning City. This notification must be done via email within twenty-four (24) hours of the incident. This immediate notification allows the Owning City to take necessary actions related to the vehicle, such as insurance claims or initiating recovery efforts.

This requirement ensures that the Owning City is promptly informed of any loss or potential loss of their assets. The quick notification timeframe of 24 hours is crucial for minimizing potential losses and initiating timely investigations. The use of email as the notification method provides a documented record of the communication.

For a prospective Budget franchisee, this means that if they are operating as a Custodial City, they must have procedures in place to quickly identify and report any vehicle conversions or thefts to the appropriate Owning City. Failing to do so could result in the Custodial City being held responsible for losses or damages associated with the incident. This responsibility highlights the importance of maintaining strong security measures and inventory control to prevent vehicle theft or unauthorized use.