Can a Budget franchisee relocate their franchise outside of their licensed territory?

According to Budget's 2025 Franchise Disclosure Document, a franchisee is not allowed to relocate their Budget franchise outside of their licensed territory. The FDD states explicitly that franchisees "will not be allowed to relocate your Budget Franchise outside of your licensed territory."

This restriction means that if a franchisee wishes to move their business, they must find a new location within their originally assigned territory. This could present challenges if the franchisee's current location becomes unsuitable due to factors like increased competition, changing demographics, or rising rental costs. The franchisee would need to carefully evaluate potential new sites within the existing territory, considering factors such as visibility, accessibility, and proximity to target customers.

While Budget restricts relocation outside the territory, franchisees can apply for the right to open additional Budget franchises under separate agreements. However, Budget is under no obligation to approve these requests. This provides an avenue for expansion within or potentially outside the original territory, but it is subject to Budget's discretion. Franchisees should discuss their long-term growth plans with Budget to understand the potential for opening additional locations.

It is important to note that while franchisees cannot relocate outside their territory, Budget and its affiliates can solicit or accept orders from customers located anywhere without compensating the franchisee. This highlights the importance of understanding the competitive landscape and the potential for competition from Budget's other channels, even within the franchisee's licensed territory.