What happens if a Non-Owned Budget Vehicle was in a Turnback status in Wizard and was then rented?

According to Budget's 2025 Franchise Disclosure Document, if a Non-Owned Budget vehicle was in a Turnback status in Wizard and was then rented, the Renting City will pay the Owning City 100% of the rental revenue. Additionally, there are penalties associated with renting a vehicle in Turnback status. If the rental did not result in a manufacturer's program rejection, the Renting City will pay the Owning City a $200 penalty. However, if the rental resulted in the vehicle being rejected from the manufacturer's repurchase program, the Renting City will pay the Owning City $500.

These penalties and revenue sharing arrangements are part of Budget's Intercity Rental policies, designed to manage the use of vehicles between different Budget locations. The 'Turnback' status indicates that a vehicle is intended to be returned to the manufacturer under a repurchase program. Renting out a vehicle in this status can disrupt the planned return and potentially lead to rejection from the program, hence the penalties.

For a prospective Budget franchisee, it's crucial to understand these financial responsibilities and ensure that staff are properly trained to identify vehicles in 'Turnback' status and prevent them from being rented out. Failure to comply with these policies can result in significant financial penalties, impacting the profitability of the franchise. Franchisees should also familiarize themselves with the 'Turnback' section of the FDD to understand all penalties related to Turnback Vehicles.

Budget franchisees should also be aware of the potential for additional fees if any of the prohibited actions are performed. These include renting a vehicle in the wrong direction, renting a non-owned vehicle that is not documented, using non-owned vehicles on rentals using any Fleet movement rates, renting a corporate owned vehicle one-way if a Licensee Vehicle is available, using a non-owned vehicle for manager or employee use, renting a vehicle the Owning City has placed on ALT 1 or ALT 2 hold in Wizard, renting a vehicle to a destination that does not have an operating location, shuttling a non-owned vehicle without proper documentation and authorization, and violating rate policy.