To what extent must a Budget franchisee adhere to Budget's rental rates?

According to Budget's 2025 Franchise Disclosure Document, franchisees must adhere to Budget's rental rates to the maximum extent the law allows, including maximum rates. Franchisees must also honor all rental rates communicated to Budget for their franchise. This means Budget has significant control over pricing, which can impact a franchisee's profitability and competitiveness. Franchisees need to be aware of these pricing constraints and factor them into their business plans.

Budget also has specific rate programs that franchisees must follow. Under the Corporate Rate Program, franchisees must abide by pre-negotiated rental rates and other terms that Budget negotiates for National Accounts. This program offers corporate customers special rates and benefits in return for the volume of rental car business they provide to the Budget network. Participation in the Corporate Rate Program is mandatory, ensuring consistent pricing and service for national corporate clients across all Budget locations.

Budget may advertise leisure rental rates as part of promotional programs. If a franchisee voluntarily agrees to comply with suggested leisure rental rates, including tour rates, they must honor the agreed-to rental rates and all other terms of such programs. Franchisees are allowed to impose surcharges on National Account rates at their locations where such surcharges have been negotiated with the National Accounts or are otherwise permitted under Budget pricing policies to compete with additional suppliers of the National Accounts. This provides some flexibility for franchisees to adjust pricing based on local market conditions and competition, while still adhering to the overall rate structure set by Budget.