For a Budget franchise, what standards are referenced regarding the General Manager's responsibilities?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget does not require you to participate personally in the direct operation of your Budget Franchise, but strongly urges you to do so.
You must employ on a full-time basis, at all times during the term of your Budget License Agreement, at least one General Manager who has completed the instruction Budget furnishes and who will devote his or her entire time during normal business hours to the management, operation, and development of your Budget Franchise as required in the Standards and the Manual. Your General Manager need not have an equity interest in the Budget Franchise or in you. An on-premises supervisor must successfully complete Budget's training program.
Persons who are the beneficial owners and principal officers of your Budget Franchise must sign certain documents included in the Budget License Agreement, including Budget's Nondisclosure and Noncompetition Agreement. Budget may negotiate provisions in this section for the Budget License Agreements it offers to Budget Licensees.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 65)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, while Budget does not require the franchisee to personally operate the Budget Franchise, they strongly urge it. The franchisee must employ a General Manager on a full-time basis who has completed Budget's instruction. This General Manager must devote their entire time during normal business hours to the management, operation, and development of the Budget Franchise as required in the Standards and the Manual. The General Manager is not required to have an equity interest in the Budget Franchise. An on-premises supervisor must successfully complete Budget's training program.
Budget will furnish a representative and additional resources through web-based training seminars, field visits, or other programs, at its expense, to train and assist the General Manager and employees in the operation of the Budget Franchise, as Budget deems necessary. Budget may also furnish operating training and assistance through web-based training seminars, representatives, or other training programs requiring the attendance of the franchisee and/or their managers as deemed necessary by Budget.
Licensees must notify Budget of any proposed change in their General Manager, and any replacement General Manager must complete the instruction Budget prescribes to Budget's satisfaction. No person may be employed as the General Manager unless they have completed the instruction furnished by Budget to Budget's satisfaction. Licensees must also notify Budget of the names and addresses of all of their officers, directors, and managers, and must notify Budget immediately in the event changes in any such positions occur, including providing Budget with organizational documents executed to effect or approve such change. Budget reserves the right to periodically run criminal background checks and credit checks on any of the licensee's officers, directors, and managers, including at the time of renewal.