How long does a Budget licensee have to pay the amounts contained within the Composite Statement from the Composite Statement Date?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
If Budget so chooses to use a Composite Statement, Licensee will pay to Budget (or its designated affiliate) all amounts contained within the Composite Statement, including any late fees, administrative fees
and/or any contested fees that have not been resolved as further described below, within forty-five (45) days of the Composite Statement Date. Licensee will have forty-five (45) days from the Composite Statement Date, to contest and adequately address any charges or credits on the Composite Statement in accordance with the Standards (the "Review Period"). Licensee agrees that any changes or credits not properly contested or addressed within the Review Period will be considered final, due and payable to Budget (or its designated affiliate) pursuant to this Paragraph 7.8 and the Rental System Agreement. Budget (or its designated affiliate), at its sole discretion, will first apply any payments that it receives to the oldest balances first and may modify the Review Period or any of the Standards relating to the Composite Statement upon written notice to the Licensee.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee has 45 days from the Composite Statement Date to pay all amounts contained within the Composite Statement. This includes any late fees, administrative fees, and contested fees that have not been resolved. The Composite Statement includes specific charges and credits relating to various programs.
During this 45-day period, known as the "Review Period", the licensee can contest any charges or credits on the Composite Statement, addressing them according to Budget's standards. Any items not properly contested or addressed within this Review Period are considered final and must be paid to Budget or its designated affiliate.
Budget has the discretion to apply payments it receives to the oldest balances first. Additionally, Budget can modify the Review Period or any standards related to the Composite Statement, provided they give the licensee written notice. This means it is essential for franchisees to carefully review each Composite Statement and address any discrepancies promptly to avoid late fees or unresolved issues.