Where can I find the amount and payment manner for the Initial License Purchase Fee for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1 Initial License Purchase Fee. Licensee will pay to Budget an Initial License Purchase Fee for the right to become the Network licensee in the Territory in the amount set forth and in the manner identified in the Summary Pages (Section 10(a)) upon execution of this Agreement. Such fees are fully earned by Budget upon execution of this Agreement and are not refundable, in whole or in part, under any circumstances.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, details regarding the Initial License Purchase Fee can be found in the Summary Pages, specifically Section 10(a). The exact amount of the Initial License Purchase Fee and the manner in which it is to be paid are outlined there.
Budget requires that the Initial License Purchase Fee be paid upon execution of the License Agreement. Once the agreement is executed, Budget considers the fee fully earned and it is non-refundable under any circumstances.
However, Item 23 includes some important modifications for prospective franchisees in certain states. For example, initial fees may be deferred until Budget has met its pre-opening obligations to the franchisee and the franchisee's business is open to the public. This deferral is specifically mentioned for Illinois and Washington, and generally in a modification to Sections 7.1 and 7.2 of the agreement. Franchisees should carefully review Section 10(a) and Item 23, and consult with Budget to understand the specific initial fee and payment terms applicable to their situation and location.