Is a Budget Licensee required to comply with all terms and conditions of National Account programs?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
"). 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. Licensee will reimburse Budget for amounts paid to travel agents or other groups on Licensee's behalf, including abiding by the terms of such credit and other programs such as frequent flyer, frequent renter or other travel incentive programs, which Budget may designate. Licensee will display any promotional programs, including special suggested rate promotions as a result of agreements Budget enters into with National Accounts. Licensee must provide service to the National Accounts in accordance with Budget's requirements. If Licensee fails to do so, in addition to other remedies available to Budget under this Agreement, Budget will have the right, without notice to Licensee, to provide (or license a third party, including a Related Entity, to provide) service to one or more National Accounts in the Territory.
- 6.2 Reservation and Rental Systems. Licensee agrees to: (a) participate in a reservation system (the "Reservation System"), which is now in effect, which may be modified or which may hereafter be instituted by Budget, in its sole discretion;
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget licensees must comply with the terms and conditions of National Account programs, subject to the provisions of Paragraph 9.15. This includes adhering to rates set by Budget for National Accounts, association discounts, and corporate rates, but excludes tour rates.
Budget has the right to establish and modify National Account programs, including rebates, damage waivers, and liability insurance coverage. Licensees are required to accept reservations, abide by all terms and rates, and maintain vehicle availability for National Accounts. They must also service these accounts in accordance with the standards set in the agreement, potentially including a higher level of service and information sharing.
However, licensees can impose surcharges on National Account rates at their locations if these surcharges have been negotiated with the National Accounts or are permitted under Budget's pricing policies to compete with other suppliers. Budget also has the right to provide service to National Accounts within the licensee's territory if the licensee fails to meet Budget's service requirements. This ensures that National Account customers receive consistent service, but it also means that Budget can intervene directly if a licensee does not comply with the required standards.