What level of service is Budget Licensee required to provide to National Accounts?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
nd Other Account Participation**. Budget will have the right to enter into service contracts with agencies and departments of the national, state/provincial, local and other governmental subdivisions; national and international industries and institutions; and other local, regional, national and international accounts (collectively, the "National Accounts"). Budget has the right to set minimum and maximum pricing to the extent permitted by law. Licensee agrees to accept reservations, abide by all terms and rates and maintain the availability of Vehicles for rent to such National Accounts. Licensee will service such National Accounts in the same manner as is required in this Agreement for other customers of Licensee or to provide such higher level of service for the National Account customers as required by the Standards, including maintaining and sharing with the Network information about the National Account and National Account customers. Subject to the provisions of Paragraph 9.15, Licensee agrees to comply with all of the terms and conditions of all National Account programs, as Budget may establish and modify, including rebates, damage waivers and liability insurance coverage. Budget has established a centralized system of paying travel agents and other groups as a result of referral business to Licensees.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee must service National Accounts in the same manner as required for other customers, or provide a higher level of service as required by Budget's standards. This includes maintaining and sharing information about the National Account and its customers within the Budget network.
Budget has the right to enter into service contracts with governmental agencies, national and international industries, and other accounts, setting minimum and maximum pricing where permitted by law. The licensee must accept reservations, adhere to the terms and rates, and ensure vehicle availability for these National Accounts.
Budget also has the right to take action if a licensee fails to meet these service requirements. Budget can provide the service themselves or license a third party to do so within the licensee's territory, without prior notice to the licensee. This underscores the importance of adhering to Budget's service standards for National Accounts to avoid potential intervention by Budget.