By what day of the month are the License Fees due to Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 License Fees. Licensee will pay to Budget by the tenth (10th) of each month: License Fees for the operation of the Rental Business, and other fees associated with the Rental
Business, in the amount set forth and in the manner identified in the Summary Pages (Section 10(b)). The definition of Gross Revenue for the Rental Business is defined in Paragraph 7.10. All fees due hereunder will be documented through the Monthly System Fee Report and invoice, which Licensee will submit to Budget along with all fees due hereunder. Such fees will be subject to adjustment in accordance with the results of any audit by Budget of the records of Licensee.
- 7.3 Monthly Marketing Fees.
Licensee will pay to Budget a Monthly Marketing Fee identified in the Summary Pages (Section 10(c)).
License Fees and Monthly Marketing Fees are collectively referred to as "System Fees."
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, License Fees for the operation of the Rental Business are due by the tenth (10th) of each month. These fees, along with other fees associated with the Rental Business, are documented through the Monthly System Fee Report and invoice, which the Licensee must submit to Budget along with all fees due.
It's important to note that these fees are subject to adjustment based on the results of any audit conducted by Budget of the Licensee's records. This means that the initial invoice may not be the final amount due, and franchisees should maintain accurate records to ensure they can reconcile any discrepancies.
Additionally, the document specifies that License Fees and Monthly Marketing Fees are collectively referred to as "System Fees." This is relevant because other sections of the FDD may refer to System Fees, encompassing both License Fees and Monthly Marketing Fees. Franchisees should be aware of this terminology to understand their overall financial obligations to Budget.