What does the Budget US Licensee Audit Report detail?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
the payment of licensing, maintenance or access fees to Budget, its affiliates or others for the use of such systems. Licensee will be required to install any new or modified systems within the time period specified by Budget. All computer hardware and software used by Licensee will be totally compatible with Budget's computer systems and will strictly conform to the Standards. Licensee will comply with Standards Budget develops with regard to use of websites in connection with the operation and/or promotion of Rental Business. Licensee will provide Budget or its designee 24 hour-a-day/7 day-a-week access to all information or data arising from or related to operation of the Rental Business that is utilized, stored, or contained in computer systems.
- 9.17 Inspection. So long as Licensee is not in default of any provision of this Agreement, Budget will have the right, not more than two (2) times per calendar year, after giving at least five (5) days prior written notice to Licensee, to send representatives to inspect the Rental Business, and to audit the books and records thereof, to determine the quality thereof and the faithfulness of Licensee's compliance with the provisions of this Agreement and the Standards. Once Licensee receives a notice of default under Paragraph 11.3, whether or not cured, Budget will have the right and without prior notice to Licensee, to so inspect the Rental Business and to so audit the books and records thereof, including running a credit or D&B check. Budget will bear the cost of all such inspections. Notwithstanding the preceding sentence, if such inspection
discloses that Licensee has failed to comply with any provision of this Agreement or the Standards in a manner that would permit Budget to terminate this Agreement pursuant to Paragraphs 11.3 or 11.4, Licensee shall bear the cost of such inspection, including normal daily compensation, traveling expenses, room and board.
- 9.18 Authorized Products and Services. Licensee will offer all products and services that Budget authorizes for the Rental Business. Licensee will not offer at a Location or otherwise any other products or services that Budget has not authorized or engage in any other business activities without Budget's prior written consent.
- 9.19 Customer Surveys. Licensee agrees to participate in and provide its full cooperation to facilitate all customer service surveys and follow-up programs conducted by on or on behalf of Budget. Budget agrees to pay for the cost of such surveys conducted System-wide. Licensee shall pay the cost of any surveys if conducted solely for the Licensee's Territory.
- 9.20 Capital Expenditures. Notwithstanding anything contained in this Agreement to the contrary, Licensee will not be obligated to incur major capital expenditures or facility upgrades with respect to the Locations for a period of twenty-four (24) months from the date hereof, except for expenditures and upgrades related to the conversion of Budget's existing computer systems to the Reservation System (or successor system designated by Budget) or as required by law or by any governmental agency such as an airport authority.
- 9.21 Personally Identifiable Information ("PII")/IT Security.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Budget has the right to inspect a licensee's rental business and audit their books and records, up to two times per calendar year, provided they give at least five days prior written notice. These inspections and audits are to ensure the quality of the business and the licensee's compliance with the License Agreement and Standards. Budget bears the cost of these inspections unless the inspection reveals that the licensee has failed to comply with the agreement or standards in a way that would allow Budget to terminate the agreement. In that case, the licensee will bear the cost of the inspection, including compensation, travel expenses, and room and board.
If a licensee is in default of any provision of the License Agreement, Budget has the right to inspect the rental business and audit the books and records without prior notice, including running a credit or D&B check. Licensees are required to provide Budget or its designee with 24/7 access to all information or data related to the operation of the rental business that is stored in computer systems. All computer hardware and software used by the licensee must be fully compatible with Budget's computer systems and conform to the Standards.
Licensees must submit a Monthly System Fee Report and invoice to Budget by the 10th of each month, along with other control reports and financial information. They must also submit annual financial statements within 120 days after the end of their fiscal year, certified by an independent certified public accountant or an officer of the licensee. If Budget believes that any report or financial statement understates the Gross Revenue of the Rental Business by 5% or more, or is unclear or misleading, Budget can require the licensee to furnish audited financial statements and implement new hardware or software systems.