What does 'LDW' stand for in Budget's rental agreements?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.5 Loss Damage Waiver.
Licensee will make readily available to each customer the option to effect the waiver of any claim against such customer for collision or certain other damage to the rented Vehicle, notwithstanding any collision or comprehensive insurance deductible amount, subject to such conditions and limitations as are prescribed in the Standards and/or as are contained in the Standard Rental Agreement and the requirements of applicable law.
Licensee may charge a reasonable, additional fee for such waiver.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, LDW refers to Loss Damage Waiver. Budget franchisees must offer customers the option to waive any claims against them for collision or certain other damage to the rented vehicle, regardless of any collision or comprehensive insurance deductible. This waiver is subject to conditions and limitations outlined in the Standards and the Standard Rental Agreement, as well as applicable law.
Budget franchisees are allowed to charge an additional fee for this waiver. This means that franchisees have the opportunity to generate additional revenue through the sale of Loss Damage Waivers to customers.
It is important for prospective franchisees to understand the specific conditions and limitations associated with the Loss Damage Waiver, as well as the fees they are allowed to charge. This information can be found in the Standards and the Standard Rental Agreement. Franchisees should also be aware of any applicable laws that may affect the terms and conditions of the waiver.