Is a Budget franchisee required to participate in any local or regional advertising cooperative?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
does not conduct regular reviews of each licensee's materials, but you are required to develop materials that are in good taste, are in compliance with the law, and comply with rules for Budget's Proprietary Marks and the Standards. You are not required to participate in any local or regional advertising cooperative (the Budget License Agreement, Article X).
Budget may, in its sole discretion, obtain "yellow pages" and "white pages" listings identifying the Franchised Business in such telephone directories as Budget may designate, and Budget may obtain reimbursement from you for its costs and expenses in obtaining and maintaining such listings.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are not required to participate in any local or regional advertising cooperative. However, Budget may require franchisees to spend between $2,000 and $5,000 for grand opening promotions.
Budget currently does not charge a marketing fee to franchisees, but may require franchisees in the future to spend an amount equal to 2% of their Budget Franchise's Gross Revenues on local advertising annually. Budget retains the right to review all advertising and promotional materials used by franchisees before they are used to ensure they are in good taste, comply with the law, and adhere to the rules for Budget's Proprietary Marks and Standards.
Budget conducts advertising and promotion at its own expense and discretion. Franchisees may be asked to participate in various types of Marketing Programs under a Participation Agreement. Budget can change or eliminate its advertising expenditures at any time. Budget has full control over advertising activities, including creative concepts and media placement. Advertising may be local, regional, or national and appear in any form of media. Budget also uses a portion of the Reservation Fee for promotion but this does not constitute a contribution to any advertising or marketing fund by licensees.