For Budget licensees not on Wizard, in what currency must payments be made to Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- Currency. Payments made by Licensees not on Wizard must be paid to Budget only in U.S. or Canadian dollars converted with respect to local currency, using ABCR'S then applicable exchange rates used for other currency conversion purposes. Wizard automatically converts the local currency to U.S. dollars for those licensees on Wizard, so that Budget or ABCR may issue payment to travel sources.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget licensees who do not use the Wizard system must make payments to Budget in either U.S. dollars or Canadian dollars. If the licensee's local currency is neither of these, the payment must be converted using Avis Budget Car Rental, LLC's (ABCR) exchange rates applicable at the time of conversion.
This policy ensures that Budget receives payments in standardized currencies, simplifying accounting and financial management. The use of ABCR's exchange rates aims to provide a consistent and fair conversion process for all licensees, regardless of their location. Licensees need to stay informed about the current exchange rates used by ABCR to ensure accurate payment amounts.
For Budget licensees using the Wizard system, the FDD states that the system automatically converts the local currency to U.S. dollars. This simplifies the payment process for those licensees, as they do not need to handle the currency conversion themselves. The Wizard system streamlines financial transactions, reducing the administrative burden on franchisees and ensuring timely and accurate payments to travel sources.