What minimum level of encryption is required for electronic data transmission containing confidential, credit card, or PII data that traverses any network and is processed by Budget Licensee's business systems or networks with access to the System?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Encryption of at least 128-bit must be employed for electronic data transmission that contains confidential, credit card and/or PII (Personally Identifiable Information) data that traverse any network and are processed by Licensee's business systems or networks with access to the System. For encryption in storage, such as email or local media, industry standard encryption tools must be utilized.
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- Wireless Networking is not generally acceptable for systems that will be interfacing with the System. Should Licensee have a requirement to utilize Wireless Networking for the devices that interface with the System, the wireless network must be protected with a minimum of WPA-2 encryption with keys rotated quarterly. Additionally, MAC address filtering should be implemented to only permit known devices on the wireless network.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a minimum of 128-bit encryption must be used for electronic data transmission containing confidential information, credit card data, or Personally Identifiable Information (PII). This encryption requirement applies to data that is transmitted across any network and processed by the Budget licensee's business systems or networks that have access to Budget's system. For data encryption in storage, such as email or local media, industry standard encryption tools must be utilized.
This requirement ensures that sensitive data is protected during transmission, reducing the risk of unauthorized access or interception. Franchisees must implement and maintain this level of encryption to comply with Budget's security policies and procedures. This is a standard security practice in the franchise industry, particularly for brands that handle sensitive customer data.
Additionally, Budget specifies that wireless networking is generally not acceptable for systems interfacing with their system. If a franchisee needs to use wireless networking, it must be protected with a minimum of WPA-2 encryption, and the encryption keys must be changed quarterly. MAC address filtering should also be implemented to restrict network access to known devices only. These additional security measures further protect the Budget system and customer data from potential threats.