factual

Can a Budget franchisee operate the Rental Business from locations other than those specified on Summary Pages (Section 4)?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

ments listed in the Summary Pages (Section 4) and in accordance with the Standards. Budget will consider factors including market size, fleet requirements, proximity to airport or other commercial hub, traffic patterns and access, the availability of real estate in the given market and cost factors before declaring approval or disapproval.

  • 8.4 Commencement of Operations. Licensee agrees to commence the operation of the Rental Business not later than the date specified in the Summary Pages (Section 9). Licensee will be deemed to have commenced operations of the Rental Business hereunder upon the opening of its first Location in the Territory.

8.5 Development of the Rental Business Premises.

  • (a) Location of Rental Business. The Rental Business may be operated only from the Location(s) pre-approved by Budget in writing according to Paragraph 8.3 and the Summary Pages (Section 4), and may be used only for the Rental Business and no other purpose without Budget's prior written consent, except where Budget has granted Licensee the right to operate non-exclusive Rental Businesses under this Agreement. Budget is not obligated to visit any specific site before declaring approval or disapproval.
  • (b) Layout and Appearance of Rental Business. Licensee will submit to Budget for Budget's written approval, plans and specifications for the layout of each proposed location of the Rental Business. Upon Budget's approval, Licensee will promptly proceed to develop the Rental Business location in accordance with the Standards. No material changes will be made to the layout or appearance of any of the Rental Business during the term of this Agreement without Budget's prior written approval.
  • (c) Condition of Rental Business; Hours of Operation. The Rental Business will be kept and maintained at all times in clean condition, in good order and repair and in accordance with the Standards.

(d) Refurbishing and Upgrading. Subject to Paragraph 9.20 herein, Licensee agrees to refurbish and upgrade the condition of the Rental Business as may be reasonably required by Budget to maintain or improve the appearance of the Rental Business, to increase its sales potential or to comply with the Standards. Licensee agrees to display the then-current Budget logos and marks on all signage, forms, uniforms, stationery and any other items containing the Budget logos and Marks. If Budget changes the logo or trade dress, Licensee will have twenty-four (24) months to make such modifications pursuant to this paragraph.

OPERATIONAL REQUIREMENTS

  • 9.1 General Manager. Licensee will employ on a full-time basis at least one (1) General Manager who has completed the instruction furnished by Budget to Budget's satisfaction and who will devote his or her entire time during normal business hours to the management, operation and development of the Rental Business. The General Manager designated by Licensee at the date of execution of this Agreement is set forth in the Summary Pages (Section 5). Licensee will notify Budget of any proposed change in its General Manager. Any replacement General Manager must complete the instruction Budget prescribes to Budget's satisfaction. No person may be employed as the General Manager unless such person will have completed the instruction furnished by Budget to Budget's satisfaction.
  • 9.2 Management. Licensee shall notify Budget of the names and addresses of all of Licensee's officers, directors and managers.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, a franchisee can only operate the Rental Business from locations pre-approved by Budget in writing. These locations are specified in Paragraph 8.3 and the Summary Pages (Section 4). The franchisee is restricted to using these locations solely for the Rental Business unless Budget provides prior written consent for any other purpose, except where Budget has granted the franchisee the right to operate non-exclusive Rental Businesses under the Franchise Agreement. Budget is not required to visit any site before giving approval or disapproval.

Budget's prior written approval is also required for the layout of each proposed location. The franchisee must submit plans and specifications for the layout, and once approved, they must develop the location according to Budget's Standards. Any material changes to the layout or appearance during the term of the agreement also require Budget's prior written approval.

Budget also requires franchisees to open locations by certain dates in specific markets and commercial airports as outlined in the Summary Pages (Section 4). Franchisees must actively operate the Rental Business at all specified locations throughout the term of the agreement. However, a franchisee can cease operations at a commercial airport if all airlines eliminate service at that airport, provided they give Budget forty-five days' prior written notice. Failure to open and operate locations as specified in Paragraph 8.1 and the Summary Pages (Section 4) can result in Budget terminating the agreement or converting the franchisee's exclusive rights to non-exclusive rights in the affected market.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.