What expenses are specifically excluded from the automatic authorization for customer reimbursement by a Budget ERS or Exchange City?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
is subject to state law.
- a. The Owning City, if aware of fines, will provide the Renting City with traffic violation fines immediately upon notification so they can charge the customer, and must bill the Renting City to recover any costs associated with paying traffic violations.
- b. Wizard locations that do not have access to IAJ must contact the station adjustment department at the Virginia Beach Processing center to have the charges added to the rental agreement. [stationadjustmentsvab@avisbudget.com.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget ERS (Emergency Road Service) and Exchange Cities have automatic authorization to reimburse customers for out-of-pocket road expenses up to $250. This reimbursement is processed through the Wizard system on the rental contract and typically covers expenses resulting from mechanical failures that are not the customer's fault.
However, the automatic authorization specifically excludes certain situations. These exclusions are customer-reported stolen vehicles and lodging expenses for customers involved in accidents. In these cases, the standard $250 automatic reimbursement does not apply, and presumably, a different procedure or approval process would be required to handle these expenses.
This exclusion is important for prospective Budget franchisees to understand, as it clarifies the scope of their authority in handling customer reimbursements. Franchisees should familiarize themselves with the proper procedures for managing expenses related to stolen vehicles and accident-related lodging to ensure compliance with Budget's policies and to provide appropriate customer service in these exceptional circumstances.