Is a Budget franchisee required to accept reservations from National Accounts?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
s, or in any area, which includes a particular licensee's territory. Budget will have no obligation to segregate any funds paid by Licensee to Budget which Budget plans to expend for advertising and promotion, nor will any such funds be deemed trust funds but rather will be deemed general funds of Budget.
- 5.3 International Directory. Budget may cause to be published an international directory listing the name and address of the Rental Business. The international directory may be published electronically.
PROGRAMS
- 6.1 National, Travel Programs and Other Account Participation. Budget will have the right to enter into service contracts with agencies and departments of the national, state/provincial, local and other governmental subdivisions; national and international industries and institutions; and other local, regional, national and international accounts (collectively, the "National Accounts"). Budget has the right to set minimum and maximum pricing to the extent permitted by law. Licensee agrees to accept reservations, abide by all terms and rates and maintain the availability of Vehicles for rent to such National Accounts. Licensee will service such National Accounts in the same manner as is required in this Agreement for other customers of Licensee or to provide such higher level of service for the National Account customers as required by the Standards, including maintaining and sharing with the Network information about the National Account and National Account customers. Subject to the provisions of Paragraph 9.15, Licensee agrees to comply with all of the terms and conditions of all National Account programs, as Budget may establish and modify, including rebates, damage waivers and liability insurance coverage.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are generally required to accept reservations from National Accounts. Budget has the right to enter into service contracts with national, state, local, and other governmental entities, as well as national and international industries and institutions, which are collectively termed "National Accounts." Franchisees must accept reservations, adhere to the terms and rates, and ensure vehicle availability for these National Accounts. They are also expected to provide the same level of service to National Account customers as they do to other customers, or an even higher level if required by Budget's standards.
Budget also has the right to set minimum and maximum pricing for these National Accounts, to the extent permitted by law. Franchisees are obligated to comply with all terms and conditions of National Account programs, including any rebates, damage waivers, and liability insurance coverage that Budget establishes or modifies. This compliance is subject to the provisions outlined in Paragraph 9.15 of the agreement.
Furthermore, Budget franchisees are obligated to comply with rental rates set by Budget for National Accounts, including association discounts and corporate rates, but excluding tour rates. However, franchisees can impose surcharges on these rates at their locations if such surcharges have been negotiated with the National Accounts or are otherwise permitted under Budget's pricing policies to compete with other suppliers. Failure to provide service to the National Accounts according to Budget's requirements can result in Budget providing the service directly or licensing a third party to do so within the franchisee's territory.