factual

Does Budget guarantee that licensees will directly benefit from Budget's advertising and promotion expenditures?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

Budget does not guarantee that any licensee will benefit directly from Budget's advertising and promotion expenditures, nor does Budget guarantee the distribution of advertising in any quantity or format, to or for any particular licensee or licensees, 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.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, Budget does not guarantee that licensees will directly benefit from its advertising and promotion expenditures. Budget's advertising and promotion expenditures are intended to maximize recognition of the Budget marks and patronage of all rental businesses. These expenditures may be used to support experimental or test programs and programs that, in Budget's judgment, will enhance brand awareness.

Budget undertakes no obligation to ensure that its expenditures in or affecting any geographic area will be proportionate or equivalent to the license fees or any other fees paid by licensees operating in that geographic area. Furthermore, Budget does not guarantee the distribution of advertising in any quantity or format, to or for any particular licensee or licensees, or in any area, which includes a particular licensee's territory.

Budget also has no obligation to segregate any funds paid by the licensee for advertising and promotion, and these funds will be deemed general funds of Budget rather than trust funds. This means that Budget has significant discretion in how it spends advertising and promotion funds, and franchisees have no direct control over or guarantee of return from these expenditures.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.