What is the minimum monthly Club Billing charge that a Budget licensee must pay?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
veness of Licensee's Rental System Agreement.
- (b) This Addendum may be terminated as follows:
- (i) Either party may terminate this Addendum with or without cause by providing the other party with ninety (90) days prior written notice.
EXHIBIT I BUDGET FDD 571139240.7 I-35
- (ii) ABCR may terminate the Warranty Claim Processing Service upon ninety (90) days' prior written notice to Licensee.
- (iii) In the event of the insolvency or dissolution of Licensee, the making by Licensee of an assignment for the benefit of, or entering into any composition or arrangement with, creditors, or the appointment of a receiver or trustee for liquidation of the business of Licensee, or if bankruptcy, reorganization, insolvency or arrangement proceedings or p
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee is required to pay a monthly charge to ABCR (unspecified in the excerpt) for services rendered, as detailed in Schedule 1 of the agreement. This charge consists of a fixed amount of $150, plus an additional $0.22 for each Club Billing transaction. However, the agreement stipulates a minimum monthly Club Billing charge of $55.00.
In practical terms, even if the calculation of $150 plus $0.22 per transaction results in a total less than $55.00, the Budget licensee is still obligated to pay the $55.00 minimum. This ensures that ABCR receives a baseline payment for providing the services, regardless of the transaction volume.
It's also important to note that Budget retains the right to adjust these charges periodically, including those within Schedule E, with prior notice to the licensee. This means that the minimum monthly Club Billing charge could change over time, impacting the franchisee's expenses. Therefore, prospective franchisees should carefully consider this minimum charge and the potential for future adjustments when evaluating the financial feasibility of a Budget franchise.