What factors will Budget consider before approving or disapproving a location?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
o remove materials and signage containing the Marks. At Budget's option, Licensee agrees that whenever it seeks to operate from an airport, it will obtain the entry by the applicable airport authority into the Contingent Assignment of Airport Concession Agreement attached as Exhibit D or such other similar agreement previously approved by Budget in writing. Budget reserves the right to negotiate directly with some or all airport authorities in the Territory to obtain its own airport concession agreements, which it will sublease to Licensee. Licensee agrees to cooperate fully with Budget in its efforts, and to honor all of Budget's and its obligations under said Airport Concession Agreement.
- 8.3 Prior Approval of Locations. Each Location operated by Licensee will be subject to the prior written approval of Budget and will be managed by an employee of Licensee who has completed the instruction specified in Paragraph 4.1. Such approval will not constitute a representation by Budget regarding the profitability of a particular Location. Locations must adhere to the specific requirements listed in the Summary Pages (Section 4) and in accordance with the Standards. Budget will consider factors including market size, fleet requirements, proximity to airport or other commercial hub, traffic patterns and access, the availability of real estate in the given market and cost factors before declaring approval or disapproval.
- 8.4 Commencement of Operations. Licensee agrees to commence the operation of the Rental Business not later than the date specified in the Summary Pages (Section 9). Licensee will be deemed to have commenced operations of the Rental Business hereunder upon the opening of its first Location in the Territory.
8.5 Development of the Rental Business Premises.
- (a) Location of Rental Business. The Rental Business may be operated only from the Location(s) pre-approved by Budget in writing according to Paragraph 8.3 and the Summary Pages (Section 4), and may be used only for the Rental Business and no other purpose without Budget's prior written consent, except where Budget has granted Licensee the right to operate non-exclusive Rental Businesses under this Agreement. Budget is not obligated to visit any specific site before declaring approval or disapproval.
- (b) Layout and Appearance of Rental Business.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company will consider several factors before approving or disapproving a proposed location for a new franchise. These factors include market size, fleet requirements, proximity to airports or other commercial hubs, traffic patterns and access, the availability of real estate in the given market, and cost factors. This evaluation is part of Budget's process to ensure that each location has the potential to be successful.
Budget does not make any representations or guarantees regarding the profitability of a particular location. The approval of a location is subject to specific requirements listed in the Summary Pages (Section 4) and must adhere to Budget's standards. The franchisee is responsible for ensuring that the location meets these requirements and is managed by an employee who has completed the necessary training.
Budget is not obligated to visit any specific site before making a decision on approval or disapproval. The franchisee must submit plans and specifications for the layout of each proposed location for Budget's written approval, and the location must be developed according to Budget's standards. No material changes can be made to the layout or appearance of any Rental Business during the term of the agreement without Budget's prior written approval.