Is the Initial License Purchase Fee for Budget negotiable?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
cy information is required to be disclosed in this Item.
ITEM 5 INITIAL FEES
When you sign the Budget License Agreement, you must pay Budget fees (the "Initial License Purchase Fee") based on the population of the territory covered by that agreement. The Initial License Purchase Fees are not uniform. Budget calculates the Initial License Purchase Fee as follows:
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- $45,000 for a territory with a population of 50,000 people (or under), plus
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- an additional $5,000 for each 5,000 population increment over 50,000 people.
Population is determined by using figures reported by the United States Census Bureau and updated regularly by a consulting company.
Budget reserves the right to waive or charge Initial License Purchase Fees greater or less than that specified above based on a variety of factors, including certain characteristics of your territory (for example, the existence of an airport, resort, large hotel, university, or other prime commercial rental location; whether you are converting an existing business; and the level of competition in your territory). Initial License Purchase Fees are not uniform and not refundable under any circumstances.
You must also pay a one-time Wizard Connection Start Fee of $320.00 per workst
Source: Item 5 — INITIAL FEES (FDD page 16)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Initial License Purchase Fee is not uniform and may be negotiable. Budget calculates this fee based on the population of the territory, starting at $45,000 for territories with 50,000 people or less, and adding $5,000 for each additional 5,000 in population. However, Budget retains the right to adjust this fee based on various factors specific to the territory.
These factors include the presence of an airport, resort, large hotel, university, or other prime commercial rental location, whether the franchisee is converting an existing business, and the level of competition within the territory. This means that a prospective franchisee might be able to negotiate a lower or higher fee depending on these characteristics.
It is important to note that while the Initial License Purchase Fee may be negotiable, it is non-refundable under any circumstances. Additionally, franchisees must pay a one-time Wizard Connection Start Fee of $320.00 per workstation. Therefore, prospective Budget franchisees should carefully assess the characteristics of their territory and factor in all associated fees when considering this franchise opportunity.