How long should a Transferring Licensee and proposed Transferee expect Budget's review of the transfer documents to take?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Before any transfer becomes effective, the written approval of Budget, consistent with the requirements of the Transferring Licensee's License Agreement, must be obtained in accordance with the procedures and requirements set forth below. Transferring Licensee and the proposed Transferee should expect that such review will require at least ninety (90) days followings its submission of the documents referred to in Paragraph D below (and possibly longer in the event that Budget has to update, supplement or register its FDD), but in no event shall the proposed transfer take effect until such time as Budget has completed its review, formally passed on its right of first refusal, provided its written approval to Transferring Licensee in the form of a Conditional Consent Letter and the Transferring Licensee and Licensee properly execute and deliver all required documentation and fees.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a Transferring Licensee and a proposed Transferee should anticipate that Budget's review of the transfer documents will take a minimum of 90 days. This timeframe starts after the submission of all required documents. However, the review period could potentially extend beyond 90 days if Budget needs to update, supplement, or register its Franchise Disclosure Document (FDD).
It's important to note that the transfer will not be finalized until Budget has completed its review process. This includes formally passing on its right of first refusal and providing written approval to the Transferring Licensee through a Conditional Consent Letter. Additionally, both the Transferring Licensee and the Transferee must properly execute and deliver all necessary documentation and fees for the transfer to be effective.
In summary, while 90 days is the expected minimum review period, prospective franchisees should be prepared for potential delays depending on Budget's specific circumstances and the completeness of the submitted documents. Ensuring all documents are accurate and submitted promptly can help streamline the review process.