Must a Budget franchisee employ a General Manager on a full-time basis?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 participate personally in the direct operation of the Budget franchise, the franchisee must employ at least one General Manager on a full-time basis during the term of the Budget License Agreement. This General Manager must complete the instruction Budget furnishes and 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 or in the franchisee's business.
This requirement ensures that each Budget location has a dedicated, trained professional overseeing daily operations. The General Manager's responsibilities include managing the business, ensuring adherence to Budget's standards, and driving the franchise's development. The franchisee must also ensure that an on-premises supervisor successfully completes Budget's training program.
Budget also requires that the franchisee notify them of any proposed changes to the General Manager position. Any replacement General Manager must complete the instruction Budget prescribes to Budget's satisfaction. Budget also reserves the right to periodically run criminal background checks and credit checks on any of the franchisee's officers, directors and managers, including at the time of renewal.