What happens if a Budget licensee's replacement General Manager does not complete the required instruction to Budget's satisfaction?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee will employ on a full-time basis at least one (1) General Manager who has completed the instruction furnished by Budget to Budget's satisfaction and who will devote his or her entire time during normal business hours to the management, operation and development of the Rental Business.
Any replacement General Manager must complete the instruction Budget prescribes to Budget's satisfaction.
No person may be employed as the General Manager unless such person will have completed the instruction furnished by Budget to Budget's satisfaction.
Budget provides a comprehensive training program and provides additional courses, resources, webinars and training materials to assist Licensee in the training of its General Manager and employees in the operation of the Rental Business. Budget reserves the right to require Licensee to attend training, as it deems necessary and in its sole discretion, and Licensee shall be required to complete any initial training subject to the terms of this Paragraph 4.2. Budget will furnish to Licensee such operating training and assistance through regular notices and announcements concerning System developments on a continuing basis, as in Budget's judgment is reasonably necessary. All training may require, at Budget's sole discretion, the attendance and participation of Licensee, its principals, its General Manager, managerial personnel or other staff of the Rental Business. Licensee will bear all expenses associated with such training programs, including travel, lodging, meals and entertainment, if any. All training must be properly attended and/or completed timely and to Budget's satisfaction. Licensee will cooperate with Budget and its representatives in connection with all training and assistance provided by Budget and will promptly undertake to correct any deficiencies brought to Licensee's attention in connection therewith. If Licensee fails to correct any such deficiencies within the time Budget prescribes, then Budget may (but is not required to) correct, or cause the correction of, such deficiencies and Licensee will reimburse Budget for the reasonable costs and expenses it incurs in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee must ensure their General Manager completes the instruction furnished by Budget to Budget's satisfaction. This requirement applies to both the initial General Manager and any replacement General Managers. The FDD states, "Any replacement General Manager must complete the instruction Budget prescribes to Budget's satisfaction" and "No person may be employed as the General Manager unless such person will have completed the instruction furnished by Budget to Budget's satisfaction."
If a replacement General Manager does not complete the required instruction to Budget's satisfaction, the licensee would be in violation of the License Agreement. The document outlines that Budget provides training programs and assistance to help licensees train their General Managers and employees. Budget also reserves the right to require the licensee to attend training as deemed necessary. The licensee is responsible for all expenses associated with such training programs, including travel, lodging, meals, and entertainment.
Furthermore, the licensee must correct any deficiencies brought to their attention by Budget in connection with the training and assistance provided. If the licensee fails to correct these deficiencies within the time prescribed by Budget, Budget has the option to correct them or cause them to be corrected, with the licensee responsible for reimbursing Budget for the reasonable costs and expenses incurred. However, the FDD does not explicitly state the consequences if the replacement General Manager fails to complete the training to Budget's satisfaction, even after Budget intervenes to correct deficiencies.
A prospective Budget franchisee should seek clarification from Budget regarding the specific actions or penalties that may be imposed if a replacement General Manager does not successfully complete the required training, even after attempts to correct deficiencies. This information is crucial for understanding the potential risks and responsibilities associated with managing personnel and ensuring compliance with Budget's training requirements.