Does Budget include software development as part of general and administrative expenses related to receipts?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
General and Administrative:
Net carrying cost of receivables and bad debts Business taxes, insurance and professional fees Postage, supplies and other office expenses Software development. Telecom and IT expenses Travel and other administrative expenses Research and Development expenses
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, software development is included as part of general and administrative expenses related to receipts. Specifically, under the category of "General and Administrative," the FDD lists several items, including "Software development" along with other expenses such as business taxes, insurance, professional fees, postage, supplies, office expenses, telecom and IT expenses, travel, other administrative expenses, and research and development expenses.
This means that Budget franchisees should expect that costs associated with software development, presumably for systems used in their rental business operations, are accounted for within the broader category of general and administrative expenses. This provides clarity on how such expenses are categorized for accounting and reporting purposes.
For a prospective franchisee, this information is useful for understanding the different types of expenses they will incur and how Budget categorizes them. It is important to consider all components of general and administrative expenses, including software development, when budgeting and forecasting the financial performance of the franchise.