Where can I find the transfer requirements, including the transfer fee, for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
the closing date of the transfer: - a. All amounts due Budget whether pursuant to the Budget License Agreement or otherwise; - b. All amounts due to other members of the Network, which Budget may, at its discretion, collect on behalf of those members; and - c. All amounts due any other creditors for products delivered, services rendered or otherwise, including but not limited to, taxes, travel agent commissions, phone bills, facility/location rent, airport concession fees, and other payables incurred in the conduct of the Rental Business as of the closing date of the transfer, which Budget may, at its discretion, collect on behalf of the creditor.
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- Provide all final documentation (i.e., corporate resolutions, lease and airport
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Exhibit F outlines the transfer requirements for a Budget franchise. This exhibit details the conditions and processes involved when a franchisee wishes to transfer ownership or control of their Budget License Agreement or Rental Business.
To initiate a transfer, the transferring franchisee must pay a transfer fee of $2,500, which may be subject to CPI-U adjustments. Additionally, the franchisee is responsible for covering any out-of-pocket expenses Budget incurs during the transfer review and approval process, although these expenses will not exceed $7,500. It's important to note that the transfer fee is refundable if Budget refuses to approve the transfer.
Furthermore, the transferring franchisee is obligated to settle all outstanding amounts owed to Budget, other members of the Budget network, and any other creditors related to the Rental Business. This includes providing all necessary documentation, such as corporate resolutions and lease assignments, to Budget. The proposed transferee must also meet certain requirements, including executing Budget's current License Agreement and making any necessary operational improvements to meet Budget's standards. Budget also retains the right of first refusal if a franchisee proposes to sell their franchise.