Is a Budget franchisee allowed to open a location for their Budget Franchise without Budget's approval?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise, exposure, parking, and proximity to the central business district. Budget usually approves or disapproves of your selection within two weeks. You may not open a location for your Budget Franchise without Budget's approval (the Budget License Agreement, paragraph 8.3).
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- Establish your initial automobile requirements (the Budget License Agreement, paragraph 8.1 and the Summary Pages).
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- Establish average annual market penetration quotas, based on the territory assigned to your Budget Franchise and the expected market demand in that territory (the Budget License Agreement, paragraph 8.1 and the Summary Pages).
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- Budget will lend you one copy of the Manual and any other manuals Budget provides for franchisees. The Manual is confidential and remains Budget's property.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a franchisee is not allowed to open a location for their Budget franchise without first obtaining Budget's approval. Budget's Licensee Relations Department will consult with and assist the franchisee in approving the location.
When determining whether to approve a location for a Budget franchise, Budget will consider factors such as traffic count, demographics, rent, suitability for use as a Budget Franchise, exposure, parking, and proximity to the central business district. Budget usually approves or disapproves of a franchisee's selection within two weeks.
This requirement ensures that all Budget locations meet certain standards and are likely to be successful. It also protects the brand's image and reputation. A prospective franchisee should carefully consider these location approval requirements and work closely with Budget to find a suitable site.