What is the initial transfer fee that a transferring licensee must pay to Budget when requesting a review of a proposed transfer?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
as of the closing date of the transfer: - a. All amounts due Budget whether pursuant to the Budget License Agreement or otherwise; - b. All amounts due to other members of the Network, which Budget may, at its discretion, collect on behalf of those members; and - c. All amounts due any other creditors for products delivered, services rendered or otherwise, including but not limited to, taxes, travel agent commissions, phone bills, facility/location rent, airport concession fees, and other payables incurred in the conduct of the Rental Business as of the closing date of the transfer, which Budget may, at its discretion, collect on behalf of the creditor.
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- Provide all final documentation (i.e., corporate resolutions, lease and airport
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a transferring licensee must pay a transfer fee of $2,500 to Budget when requesting a review of a proposed transfer. This fee may be subject to an annual adjustment based on the Consumer Price Index for all urban consumers (CPI-U), as published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment will be based on the percentage change in the CPI-U from March 31, 20XX, to the last day of the month preceding the transfer.
In addition to the $2,500 transfer fee, the transferring licensee is also responsible for covering any out-of-pocket expenses incurred by Budget during the transfer review and approval process. However, the total out-of-pocket expenses recovered by Budget will not exceed $7,500. These expenses, if any, are to be paid by the transferring licensee to Budget upon the conclusion of the transfer.
It's important to note that if the transfer does not proceed due to Budget's refusal to approve it, no transfer fee is due, and Budget will refund any transfer fee that has already been paid. This condition protects the transferring licensee from incurring costs if the transfer is not approved by Budget. However, if the licensee is seeking to transfer voting securities in stock offerings, the transfer fee is $5,000 plus any CPI-U adjustment from March 31, 20XX.