Must a Budget licensee purchase forms from suppliers approved by Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee shall purchase forms to be used in the Rental Business from suppliers approved by Budget and whose forms meet Budget's then-current specifications.
Licensee shall not modify or alter the forms without Budget's prior written consent.
Budget may require Licensee to send to Budget copies of some or all vehicle rental agreements and other customer agreements.
Licensee may use only forms that Budget approves and/or requires.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee is required to purchase forms used in their rental business from suppliers that Budget has approved, provided that these forms also meet Budget's current specifications. This requirement ensures that all forms used by Budget licensees adhere to the brand's standards and maintain uniformity across the franchise system.
This mandate allows Budget to control the quality and consistency of the documents used in the rental business. By mandating approved suppliers, Budget can ensure that the forms contain all necessary information, comply with legal requirements, and reflect the brand's image. This can reduce the risk of errors or omissions that could lead to legal or operational issues for both the franchisee and the franchisor.
Furthermore, licensees are prohibited from modifying or altering these forms without prior written consent from Budget. This restriction is in place to maintain uniformity and prevent unauthorized changes that could compromise the brand's standards or create inconsistencies in customer agreements. Budget also retains the right to request copies of vehicle rental agreements and other customer agreements from the licensee, allowing them to monitor compliance and maintain oversight of the rental operations.
In summary, Budget maintains strict control over the forms used by its licensees, requiring them to be purchased from approved suppliers and prohibiting unauthorized modifications. This ensures consistency, quality, and compliance across the franchise system, protecting both the franchisee and the brand.