In evaluating a transfer, does Budget consider the Transferee's commitment to personal participation in the management and operation of the Rental Business?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In determining whether to approve the transfer, Budget shall consider each of the following:
The commitment to personal participation by the Transferee, and the stockholders, members and/or partners of the Transferee, in the management and operation of the Rental Business.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, when evaluating a transfer of ownership, Budget does consider the transferee's commitment to personal participation in managing and operating the rental business.
Specifically, Budget assesses the commitment to personal participation by the transferee, as well as the stockholders, members, and/or partners of the transferee, in the management and operation of the Rental Business. This indicates that Budget wants to ensure that the new ownership is actively involved in the day-to-day running of the franchise.
This requirement ensures that potential new owners are not simply passive investors but are dedicated to maintaining the standards and operational effectiveness of the Budget franchise. This is a common practice in franchising, as the franchisor typically wants to ensure that franchisees are actively engaged in the business to protect the brand and maintain quality standards.