For the Budget franchise agreement receipt, what information about the RAC locations must be provided?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Transferring Licensee will submit to Budget written notice of its intent to transfer, together with all of the following documents and information for Budget's review, with such documents and information being certified as true, correct and complete by Transferee, its shareholders, members and/or partner(s):
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- Pictures of the locations subject to the sale including pictures of the interior and exterior trade dress and counter.
D. AREAS OF CONSIDERATION FOR APPROVAL OF THE TRANSFER
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.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, when a licensee (franchisee) intends to transfer their license, they must provide Budget with specific documents and information for review. This information must be certified as true, correct, and complete by the Transferee, its shareholders, members, and/or partners.
Specifically, the licensee must submit pictures of the locations subject to the sale. These pictures should include both the interior and exterior of the trade dress and counter areas. This requirement ensures that Budget can assess the physical condition and brand representation of the locations being transferred.
Additionally, each location operated by the licensee is subject to Budget's prior written approval. Budget will consider factors such as market size, fleet requirements, proximity to airports or other commercial hubs, traffic patterns, access, real estate availability, and cost factors before granting approval. This approval process does not constitute a representation by Budget regarding the profitability of a particular location, and all locations must adhere to the standards outlined in the Summary Pages and the Standards. Licensees must also ensure that each location is managed by an employee who has completed the specified instruction, as detailed in Paragraph 4.1 of the franchise agreement.