For Budget franchises, what is the Custodial City's responsibility regarding vehicle damage or repairs?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
lto:reg.renewal@avisbudget.com)
- b. Licensee Vehicles: Contact the Owning City.
B. Preventative Maintenance
Preventative Maintenance (PM) will be performed by a Custodial City on Non-Owned Vehicles, when notified of PM service requirements, with the same level of care the Custodial City performs PM's on its own vehicles.
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- The Custodial City is responsible for performing PM's prior to the next rental or within seven (7) business days.
- a. The Owning City will notify Custodial City of any Preventative Maintenance (PM) requirements. Notification will be provided via the Wizard PM alert system or email to the Custodial City. The vehicle diagnostic system may also provide a service required alert on the vehicle information screen.
- b. Within 24 hours or next business day, the Custodial City will update the PM information in Wizard and/or notify the Owning City via email and update or reset the in-vehicle oil change indicator following completion of the PM service.
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- If a Custodial City does not perform or outsource a required PM prior to renting a Non-Owned Vehicle, the Owning City can bill the Custodial City for all damages as a result of failure to perform the PM and loss of use at Twenty-Five Dollars ($25) per day for the period the Vehicle is out of service.
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- Non-mechanized Custodial Cities will notify a Licensee Owning City via email upon completion of PM service. For vehicles owned by ABG, a non-mechanized Custodial Licensee City will provide notification of completion with MVA and Mileage to PMFaxes@aivsbudget.com.
B. Damage & Repairs
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- The Custodial City will notify the Owning City of any Vehicle damage or repairs necessary within ten (10) business days of reported or discovered damage and will rep
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a Custodial City has specific responsibilities regarding vehicle damage and repairs. The Custodial City must notify the Owning City of any vehicle damage or necessary repairs within ten business days of discovering or being informed of the damage. The Custodial City is expected to repair the vehicle before its next rental. The Owning City will then reimburse the Custodial City for these repairs. The Custodial City is responsible for body damage or missing parts that occur while the vehicle is in their custody.
The Custodial City has automatic authorization to spend up to $500 to repair a vehicle. However, for any repair estimated to exceed $500, the Custodial City must obtain approval from the Owning City, with such approvals documented via email. Regardless of the repair cost, the Custodial City must submit all repair receipts to the Owning City for reimbursement. If a non-owned vehicle is improperly used, the Custodial City is responsible for all resulting damage, but this liability is capped at the vehicle's book value.
The Custodial City is also responsible for damage originating from theft, unauthorized shuttling, fire, unauthorized employee use, or failure to perform preventative maintenance, excluding damage resulting from Acts of God. In cases of flood, hail, tornado, hurricane, and fire damage, the Owning City may require the Custodial City to file a claim if the Custodial City has coverage and is adding to an existing claim where the Custodial City's vehicles were also damaged. These detailed procedures ensure clear accountability and financial responsibility between the Owning City and the Custodial City in maintaining the Budget fleet.