What is the deadline for a Budget Licensee to pay System Fees each month?
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, Licensees are required to pay System Fees to Budget by the 10th of each month. These fees cover the operation of the Rental Business and other associated fees, as detailed in the Summary Pages (Section 10(b)).
Budget requires that all fees due are documented through a Monthly System Fee Report and invoice, which the Licensee must submit along with the payment. This ensures transparency and proper record-keeping for both parties. The fees are subject to adjustment based on the results of any audits conducted by Budget on the Licensee's records.
It is important for prospective Budget franchisees to understand these payment terms and reporting requirements, as timely and accurate submissions are essential for maintaining a good standing with the franchisor. Failure to comply with these requirements could potentially lead to penalties or other consequences as outlined in the franchise agreement.