How does Budget handle customer complaints on behalf of a Budget franchisee?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
the terms and conditions of the Rental System Agreement (the "Rental System Agreement") with a Related Entity designated by Budget; (f) reserve for Budget the right to require Licensee to connect to other designated reservation systems and process through such system all rental transactions entered into with customers in the Rental Business; and (g) reserve for Budget the right to require Licensee to use rental software from certain designated software providers in conjunction with the Reservation System or any other reservation system that Budget designates.
- 6.3 Customer Complaint Programs. Licensee shall comply with all of the terms and conditions of all then-current customer complaint programs as required by the Standards; the cost to administer the current program is included as part of the Reservation Fee. Further, Budget shall handle customer complaints subject to the Budget Licensee Customer Adjustment Procedure (the "Customer Adjustment Procedure"). Under the Customer Adjustment Procedure, Budget shall have the right to resolve disputes at Budget's discretion between Licensee and its customers and issue payments to customers on the Licensee's behalf. Budget shall have the right to charge back Licensee up to the amounts of the total rental charges incurred by the customer for the rental transaction. The resolution amount is billed to the Licensee's Composite Statement (as described in Paragraph 7.9).
- 6.4 Payment Programs. Licensee agrees to accept such credit cards, vouchers, tour vouchers and other forms of payment from its customers, and otherwise to participate in and comply with all of the terms and conditions of payment programs, as required by the Standards.
- 6.5 Inter-City Program. Licensee agrees to fully participate in and comply with all of the terms and conditions of the then-current Inter-City Program governing the use and movement of corporate and licensee Vehicles. Licensee will cooperate with other licensees of the System for the purposes of providing the highest quality customer service and efficient handling of business for the entire System. Licensee will assist in the repair and return of disabled vehicles of other System licensees and will handle inter-city drops in accordance with System policy.
- 6.6 Other Budget Programs. Licensee will subscribe to, participate in, and fully comply with any advertising campaign, sales promotion, operating program, procurement program, customer satisfaction program, marketing program, account program or experimental or test program which, in Budget's judgment, enhances brand awareness or other similar activities which Budget may prescribe in the Standards or otherwise or make available for or on behalf of the Network, including those programs listed in the Summary Pages (Section 13), as such programs may be modified, replaced or instituted by Budget (including all other programs described in this Article VI, collectively, the "Programs"). Licensee agrees to support and service such Programs in accordance with the relevant provisions thereof, as required by the Standards, and to contribute to the expense thereof, if any, on the same basis as other similarly situated System licensees. Licensee may be required to enter into participation or other agreements to evidence its participation in such Programs.
FEES AND OTHER PAYMENTS
- 7.1 Initial License Purchase Fee.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget has a system in place to handle customer complaints on behalf of its franchisees. Licensees must comply with all terms and conditions of current customer complaint programs as required by the brand's standards. The cost to administer the current program is included as part of the Reservation Fee. Budget utilizes a 'Customer Adjustment Procedure' and a 'Joint Resolution Procedure' to resolve these complaints.
Under the Customer Adjustment Procedure, Budget has the authority to resolve disputes between the franchisee and its customers, including issuing payments to customers. Budget can charge back the franchisee for these payments, up to the total rental charges incurred by the customer for the rental transaction. The Joint Resolution Procedure allows ABCR (through the Budget Customer Service Department) to resolve customer complaints by making payments on the franchisee's behalf, up to $150 without prior approval. Adjustments exceeding $150 require the franchisee's approval. If ABCR believes a complaint cannot be resolved through payment, it will refer the complaint to the franchisee for resolution.
The franchisee must respond to the customer and resolve the complaint within the period set forth in the Joint Resolution Procedure. If ABCR does not receive written evidence of resolution within that period, ABCR is authorized to resolve the complaint on the franchisee's behalf as it deems appropriate. ABCR may request additional information or documentation from the franchisee to assist in resolving the complaint, and the franchisee must respond in writing within the period set forth in the Joint Resolution Procedure, but no more than ten days.
Budget will bill the franchisee for the amount disbursed to a third party in settlement of the complaint, along with any applicable customer complaint fees or handling charges. This resolution amount is then billed to the Licensee's Composite Statement. Franchisees are also expected to cooperate with other licensees to provide high-quality customer service and efficient handling of business for the entire Budget system.