Must a Budget franchisee honor all rental rates communicated to Budget?

According to Budget's 2025 Franchise Disclosure Document, franchisees must adhere to rental rates under specific conditions. To the maximum extent permitted by law, a Budget franchisee must comply with and adhere to any rental rates Budget sets, including maximum rates. If Budget does not set rental rates, but the franchisee communicates their decision to adhere to Budget's suggested rental rates, then the franchisee must honor those rates. Franchisees must also honor rental rates that Budget periodically establishes under the Corporate Rate Program with regard to National Accounts, as designated by Budget.

This means that a Budget franchisee's pricing flexibility is limited. They must follow Budget's set rates and any rates they voluntarily agree to. This could impact profitability if the franchisee's costs are higher than anticipated or if the local market conditions require different pricing.

Under the Budget License Agreement, franchisees must adhere to Budget's rental rates to the maximum extent the law allows, including for maximum rates. They also must honor all rental rates that they communicate to Budget for their Budget Franchise. Under the Corporate Rate Program, with regard to National Accounts, franchisees must abide by any pre-negotiated rental rates and other terms that Budget negotiates for Corporate Rate Program participants.

Budget may advertise leisure rental rates as part of the promotional programs which it sponsors for the public. If a franchisee communicates to Budget, by execution of a voluntary participation agreement or by another means required by Budget, that it has decided in its own discretion to comply with suggested leisure rental rates, including tour rates, the franchisee will honor the agreed to rental rates and all of the other terms of such programs. Licensee acknowledges that Budget and others will rely on such communications.