What are some examples of 'prime commercial rental locations' that Budget considers when determining Initial License Purchase Fees?

According to Budget's 2025 Franchise Disclosure Document, the franchisor may adjust the Initial License Purchase Fees based on characteristics of the territory. These characteristics include the existence of an airport, resort, large hotel, university, or other prime commercial rental location. The Initial License Purchase Fees are not uniform and are not refundable under any circumstances.

For a prospective Budget franchisee, this means that the initial fee to obtain a license can vary significantly depending on the specific location and its commercial environment. A territory with an airport or a major university might command a higher initial fee than a territory without these features. This variability introduces an element of uncertainty for franchisees, as the initial fee is not solely based on population size.

Budget determines the population by using figures reported by the United States Census Bureau and updated regularly by a consulting company. The base Initial License Purchase Fee is $45,000 for a territory with a population of 50,000 people (or under), with an additional $5,000 for each 5,000 population increment over 50,000 people. However, the presence of 'prime commercial rental locations' allows Budget to deviate from this calculation.

Prospective franchisees should carefully evaluate the commercial characteristics of their target territory and understand how these factors might influence the Initial License Purchase Fee. It would be prudent to discuss these factors with Budget's representatives to get a clearer understanding of how the fee is determined for a specific location. Franchisees should also be aware that this initial fee is non-refundable, regardless of the circumstances.