If Budget changes any elements of the System, who bears the expense of implementing those changes at a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget may have to change the System to preserve and enhance the image of the Network, to accommodate consumer tastes and/or to maintain or enhance the efficiency and profitability of System licensees and operators.
Accordingly, Budget may change any of the elements of the System (including by introducing new Marks, products, reservation systems, other services and Standards) and, on notice from Budget, Licensee will promptly accept and implement all such changes at Licensee's expense and in accordance with the schedule prescribed by Budget.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the franchisee bears the expense of implementing changes to the Budget system. Budget may modify elements of the system to maintain the network's image, accommodate consumer preferences, or enhance efficiency and profitability.
Budget will notify the franchisee of any changes, and the franchisee is then required to promptly accept and implement these changes at their own expense. The implementation must also adhere to the schedule that Budget prescribes.
This means that a Budget franchisee must be prepared to invest in updates to the system, which could include new branding, products, reservation systems, or other services, as directed by Budget. The franchisee has little control over these changes but is obligated to adopt them to remain compliant with the franchise agreement.