Can a Budget franchisee rent trucks, SUVs, or passenger vans?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
License Agreement, including Budget's Nondisclosure and Noncompetition Agreement. Budget may negotiate provisions in this section for the Budget License Agreements it offers to Budget Licensees.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
Budget requires you to rent, and you are authorized to rent, only those types of motor vehicles that Budget specifies (see Item 8).
Budget currently does not, by any restriction or condition, limit you regarding the make or model of automobiles that you offer to rent (although it may impose these restrictions or conditions in the future). The Budget License Agreement limits the class of vehicles your Budget Franchise may rent (for example, you may not rent trucks, which definition excludes SUVs of any size, crossovers, passenger vans of any occupancy, and smaller than medium duty pickup trucks. In addition, you may not rent motorcycles, snow mobiles, all-terrain vehicles (ATVs), bicycles, horse-drawn vehicles, or other similar vehicles under the "Budget" name without Budget's consent). The Budget License Agreement and the Standards regulate age and other standards of quality regarding the automobiles you offer for rental or sale.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 65–66)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are generally restricted from renting trucks but are authorized to rent SUVs and passenger vans. The FDD specifies that Budget requires franchisees to rent only the types of motor vehicles that Budget specifies. The Budget License Agreement limits the class of vehicles a Budget Franchise may rent; franchisees may not rent trucks, which excludes SUVs of any size, crossovers, passenger vans of any occupancy, and smaller than medium-duty pickup trucks.
However, a separate section in Item 23 states that franchisees are authorized to offer for rental vehicles designed primarily for transporting passengers, including sport utility vehicles (SUVs) of any size, crossovers, passenger vans of any occupancy, and smaller than medium-duty pick-up trucks. This seems to contradict the restriction mentioned in Item 16.
Prospective franchisees should seek clarification from Budget regarding the types of vehicles they are authorized to rent to ensure compliance with the franchise agreement. It is important to understand any restrictions or conditions related to vehicle rentals before investing in a Budget franchise.