When does the monthly billing for Budget system service charges commence after the execution of the agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee will pay System Fees to Budget on or before the 15th day of each month for the preceding month.
License Fees and Monthly Marketing Fees are collectively referred to as "System Fees."
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, License Fees and Monthly Marketing Fees are collectively referred to as System Fees. Licensees will pay System Fees to Budget on or before the 15th day of each month for the preceding month.
This means that after signing the franchise agreement, a new Budget franchisee will begin to receive monthly bills for System Fees. These fees cover both License Fees and Monthly Marketing Fees.
The payment is due by the 15th of each month, covering the services and marketing efforts of the previous month. Franchisees should be prepared to manage these recurring monthly expenses as part of their ongoing operational costs.