For Budget franchisees in Minnesota, when is the initial license purchase fee due?

According to Budget's 2025 Franchise Disclosure Document, the standard policy is that the Initial License Purchase Fee is due upon execution of the License Agreement. However, for Budget franchisees in Minnesota, the payment of all initial fees is deferred until Budget has satisfied its pre-opening obligations to the franchisee and the franchisee's licensed business opens to the public.

This deferral of the initial license purchase fee until after Budget has fulfilled its pre-opening obligations and the business is open is a significant benefit for franchisees in Minnesota. It reduces the upfront financial burden and risk, as the franchisee does not have to pay the fee until the business is actually operational. This arrangement provides some assurance that Budget is committed to supporting the franchisee through the initial setup phase.

This deferral is specific to the initial fees and does not affect the ongoing fees such as the License Fees and Monthly Marketing Fees, which are due as outlined in the Summary Pages. Prospective franchisees should carefully review the Summary Pages (Section 10) of the Franchise Agreement to understand the amounts and payment schedules for all fees. Additionally, franchisees should confirm with Budget all pre-opening obligations to ensure clarity on when the initial fee payment will be required.