What is the Budget licensee's obligation regarding Loss Damage Waiver?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.5 Loss Damage Waiver.
Licensee will make readily available to each customer the option to effect the waiver of any claim against such customer for collision or certain other damage to the rented Vehicle, notwithstanding any collision or comprehensive insurance deductible amount, subject to such conditions and limitations as are prescribed in the Standards and/or as are contained in the Standard Rental Agreement and the requirements of applicable law.
Licensee may charge a reasonable, additional fee for such waiver.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the licensee must offer customers the option to waive any claims against them for collision or certain other damages to the rented vehicle. This applies regardless of any collision or comprehensive insurance deductible, and is subject to the conditions and limitations outlined in the Standards, the Standard Rental Agreement, and applicable law.
The licensee can charge an additional, reasonable fee for this waiver. This means that Budget franchisees have the opportunity to generate additional revenue through Loss Damage Waivers. However, they must ensure that the waiver is readily available and that all conditions and limitations are clearly communicated to the customer.
This requirement ensures that Budget customers have the option to protect themselves from financial liability in case of vehicle damage. It also provides a standardized approach to offering waivers across all Budget locations, maintaining consistency and customer satisfaction. Franchisees should carefully review the Standards and the Standard Rental Agreement to fully understand their obligations and the specific conditions and limitations associated with the Loss Damage Waiver.