Is the Budget Initial License Purchase Fee uniform across all territories?
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 Fees are not uniform across all territories. The fee is determined by the population size of the territory covered by the license agreement. Budget calculates this fee starting with a base of $45,000 for territories with a population of 50,000 or fewer people. An additional $5,000 is added for each 5,000-person increment above that 50,000 base. Population figures are based on data from the United States Census Bureau, which is regularly updated by a consulting company.
Budget also reserves the right to adjust the Initial License Purchase Fees 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 even territories with similar populations could have different Initial License Purchase Fees based on these considerations.
For a prospective Budget franchisee, this means the initial fee can vary significantly depending on the territory they choose. It is important to note that the Initial License Purchase Fees are non-refundable under any circumstances. In addition to the Initial License Purchase Fee, franchisees must also pay a one-time Wizard Connection Start Fee of $320.00 per workstation before beginning operations on the Wizard system.