Does the Budget franchise participate in the Rental System Agreement, including the Budget Licensee Customer Adjustment Procedure?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
designate. Licensee will display any promotional programs, including special suggested rate promotions as a result of agreements Budget enters into with National Accounts. Licensee must provide service to the National Accounts in accordance with Budget's requirements. If Licensee fails to do so, in addition to other remedies available to Budget under this Agreement, Budget will have the right, without notice to Licensee, to provide (or license a third party, including a Related Entity, to provide) service to one or more National Accounts in the Territory.
6.2 Reservation and Rental Systems. Licensee agrees to: (a) participate in a reservation system (the "Reservation System"), which is now in effect, which may be modified or which may hereafter be instituted by Budget, in its sole discretion; (b) execute and comply with all of the terms and conditions of any rental system agreement with Budget or a Related Entity that Budget may designate in its sole discretion, or any amended or substitute agreement governing participation in the Reservation System (the "Reservation Agreement"); (c) accept and honor all reservations received through the Reservation System or otherwise from other Network operators, if required, and to transmit all reservations which it is requested to place by any customer to the appropriate Network operator, if required, without charge to the customer, and without fee to the receiving operator, other than as required by the Standards or the Reservation Agreement; (d) adhere to the rental rates that it places in, or has another place in, the Reservation System or any other reservation system; (e) if required by Budget in its sole discretion, execute and comply with all of the terms and conditions of the Rental System Agreement (the "Rental System Agreement") with a Related Entity designated by Budget; (f) reserve for Budget the right to require Licensee to connect to other designated reservation systems and process through such system all rental transactions entered into with customers in the Rental Business; and (g) reserve for Budget the right to require Licensee to use rental software from certain designated software providers in conjunction with the Reservation System or any other reservation system that Budget designates.
6.3 Customer Complaint Programs. Licensee shall comply with all of the terms and conditions of all then-current customer complaint programs as required by the Standards;
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to the 2025 Budget Franchise Disclosure Document, Budget licensees are required to participate in the Rental System Agreement if required by Budget. Specifically, the FDD states that the licensee must execute and comply with the terms and conditions of any rental system agreement with Budget or a related entity. This agreement governs participation in the Reservation System. Budget also reserves the right to require licensees to connect to other designated reservation systems and use rental software from specific providers.
Budget also utilizes a Budget Licensee Customer Adjustment Procedure. Under this procedure, Budget handles customer complaints and has the authority to resolve disputes between the licensee and its customers. Budget can issue payments to customers on the licensee's behalf and charge back the licensee for the total rental charges incurred by the customer for the rental transaction. The resolution amount is then billed to the licensee's Composite Statement.
In practical terms, this means that as a Budget franchisee, you must adhere to Budget's reservation and rental systems, which may include specific software and payment processing requirements. You are also bound by the Customer Adjustment Procedure, which gives Budget the power to resolve customer disputes and charge back costs to you. This highlights the importance of maintaining high customer service standards and carefully managing rental transactions to minimize potential chargebacks.