Is a Budget Licensee required to execute a Rental System Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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; (b) execute and comply with all of the terms and conditions of any rental system agreement with Budget or a Related Entity that Budget may designate in its sole discretion, or any amended or substitute agreement governing participation in the Reservation System (the "Reservation Agreement"); (c) accept and honor all reservations received through the Reservation System or otherwise from other Network operators, if required, and to transmit all reservations which it is requested to place by any customer to the appropriate Network operator, if required, without charge to the customer, and without fee to the receiving operator, other than as required by the Standards or the Reservation Agreement; (d) adhere to the rental rates that it places in, or has another place in, the Reservation System or any other reservation system; (e) if required by Budget in its sole discretion, execute and comply with all of the terms and conditions of the Rental System Agreement (the "Rental System Agreement") with a Related Entity designated by Budget; (f) reserve for Budget the right to require Licensee to connect to other designated reservation systems and process through such system all rental transactions entered into with customers in the Rental Business; and (g) reserve for Budget the right to require Licensee to use rental software from certain designated software providers in conjunction with the Reservation System or any other reservation system that Budget designates.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget licensees may be required to execute a Rental System Agreement. Specifically, Budget retains the right to require licensees to execute and comply with the terms and conditions of a Rental System Agreement with a Related Entity designated by Budget. This agreement governs participation in the Reservation System.
Budget also requires licensees to participate in a reservation system, referred to as the Reservation System, which Budget may modify or institute at its discretion. Licensees must also adhere to rental rates placed in the Reservation System. Licensees are obligated to comply with rental rates set by Budget for National Accounts, excluding tour rates, although surcharges may be imposed where negotiated with National Accounts or permitted under Budget pricing policies.
Furthermore, licensees must purchase, install, and implement accounting, inventory control, sales register, reservations, security programs, and other computer hardware and software systems according to Budget's standards. These systems must be compatible with Budget's computer systems, and licensees may be required to purchase, lease, or license equipment and pay licensing, maintenance, or access fees to Budget, its affiliates, or others for the use of such systems.