What is the Budget Licensee Customer Adjustment Procedure?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The Rental System Agreement imposes Budget Licensee Customer Adjustment Procedure.
Under this Procedure, your Budget Franchise authorizes Budget's Customer Relations Department to resolve disputes at Budget's discretion between you and your customer and issue payments to the customer on your behalf up to the amount of the total rental charges to the Customer.
The resolution amount is then charged to your Budget Franchise via the monthly Licensee Settlement Statement.
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Budget Licensee Customer Adjustment Procedure is a process where Budget's Customer Relations Department is authorized to resolve disputes between a Budget franchisee and their customer. Budget can issue payments to the customer on behalf of the franchisee, up to the total amount of the rental charges.
This means that if a customer has a complaint, Budget has the authority to settle the dispute and provide a refund or other compensation to the customer directly. The franchisee does not have direct control over these resolutions for amounts up to the total rental charges.
The amount that Budget pays to resolve the customer complaint is then charged back to the Budget franchise through the monthly Licensee Settlement Statement. This could impact the franchisee's revenue, as they are responsible for covering the cost of these customer adjustments. Franchisees should be aware that Budget can make these adjustments without their explicit consent for amounts up to the total rental charges, and these adjustments will be reflected in their monthly statement.