For Budget franchisees, who must approve all rate codes?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
sifications. Budget will have the right to impose Standards for all Vehicles, equipment, signs, materials and supplies used by Licensee in the Rental Business and to require that any such Vehicle or item be purchased exclusively from suppliers approved by Budget, which might include or be limited to Budget or one or more of the Related Entities.
- 9.13 Acceptance of Vehicles. Licensee must accept and process all disabled Vehicles and other vehicles originating with other members of the Network and dropped off to Licensee as prescribed by Budget in the Standards or otherwise in writing.
- 9.14 Forms. Licensee shall purchase forms to be used in the Rental Business from suppliers approved by Budget and whose forms meet Budget's then-current specifications. Licensee shall not modify or alter the forms without Budget's prior written consent. Budget may require Licensee to send to Budget copies of some or all vehicle rental agreements and other customer agreements. Licensee may use only forms that Budget approves and/or requires.
- 9.15 Rental Rates. Budget may, advertise leisure rental rates as part of the promotional programs which it sponsors for the public. If Licensee communicates to Budget, by execution of a voluntary participation agreement or by another means required by Budget, that it has decided in its own discretion to comply with suggested leisure rental rates, including tour rates, Licensee will honor the agreed to rental rates and all of the other terms of such programs. Licensee acknowledges that Budget and others will rely on such communications. Licensee will, by the execution of this Agreement, be obligated to comply with, and adhere to, all rental rates set by Budget for National Accounts, including association discounts and corporate rates but excluding tour rates; provided however, Licensee will be allowed to impose surcharges on such rates for their locations where such surcharges have been negotiated with the National Accounts or are otherwise permitted under Budget pricing policies to compete with additional suppliers of the National Accounts.
- 9.16 Computer and Other System Standards. Licensee agrees to purchase all components for, install and implement all accounting, inventory control, sales register, reservations, security programs and other computer hardware and software systems according to the Standards and as required under Paragraph 6.2 herein.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees must obtain Budget's prior written consent before modifying or altering any forms. Licensees may only use forms that Budget approves and/or requires. This indicates that Budget maintains control over the forms and systems used within the franchise.
Budget may advertise leisure rental rates as part of promotional programs. If a franchisee voluntarily agrees to comply with suggested leisure rental rates, including tour rates, they must honor the agreed-upon rates and terms. Franchisees are obligated to adhere to all 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 where negotiated with National Accounts or permitted under Budget's pricing policies to compete with other suppliers.
Licensees may formulate and implement local advertising and promotion, but these efforts are subject to the format, trademark standards, representations, and media guidelines prescribed in the Standards. All advertising materials are subject to Budget's review and approval. Franchisees must adhere to all rental rates advertised by them or by Budget on their behalf and must avoid deceptive or misleading advertising. Establishing a website requires Budget's prior written consent, and franchisees must comply with website advertising standards, including submitting proposed website material (and changes) to Budget for approval before use. These stipulations ensure brand consistency and adherence to Budget's standards across all franchise locations.