By what day of the month must License Fees be paid to Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
is as other similarly situated System licensees. Licensee may be required to enter into participation or other agreements to evidence its participation in such Programs.
FEES AND OTHER PAYMENTS
- 7.1 Initial License Purchase Fee. Licensee will pay to Budget an Initial License Purchase Fee for the right to become the Network licensee in the Territory in the amount set forth and in the manner identified in the Summary Pages (Section 10(a)) upon execution of this Agreement. Such fees are fully earned by Budget upon execution of this Agreement and are not refundable, in whole or in part, under any circumstances.
- 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.
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 10th of each month. These fees, along with other fees associated with the Rental Business, are outlined in the Summary Pages, Section 10(b).
Budget also requires franchisees to submit a Monthly System Fee Report and invoice along with all fees due. These fees are subject to adjustments based on audits conducted by Budget of the franchisee's records.
License Fees and Monthly Marketing Fees are collectively referred to as "System Fees," which Budget franchisees must pay on or before the 15th day of each month for the preceding month. Franchisees should ensure timely payments to avoid any potential late fees or other penalties as outlined in the franchise agreement.