If a Budget licensee does not have the reserved vehicle class available, what are the required actions regarding providing a vehicle to the renter?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) The terms and conditions of Licensee's reservations, including, without limitation, the class of vehicle and the rate; provided, however, that if there are no vehicles available within the reserved vehicle class: i) Licensee must provide renter with a vehicle in a higher class at the reserved rental rate; or ii) if there are no vehicles available within a higher class, Licensee must provide renter with a vehicle in the next lowest class as long as it also provides the renter with the best rate for a vehicle in that class, or with the reserved rate, whichever is lower.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget licensees must adhere to specific procedures when a reserved vehicle class is unavailable. If a Budget licensee does not have the vehicle class that the renter reserved, the licensee must first try to provide the renter with a vehicle in a higher class at the originally reserved rental rate. This ensures the customer receives an equivalent or better vehicle without additional cost.
If a higher class vehicle is also unavailable, the Budget licensee is then obligated to provide the renter with a vehicle in the next lowest class. In this case, the licensee must also provide the renter with the best available rate for that lower class vehicle, or the originally reserved rate, whichever is lower. This ensures the customer benefits from any cost savings associated with the downgrade.
These requirements are designed to ensure customer satisfaction and maintain Budget's brand reputation, even when unforeseen circumstances like vehicle unavailability arise. By adhering to these guidelines, Budget licensees can mitigate potential negative experiences and uphold service standards. Franchisees should ensure their staff are well-versed in these procedures to handle such situations effectively.