How much advance notice will Budget provide to licensees before requiring deployment of revisions to the Control List, and what is the exception to this timeframe?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Budget will grant Licensee access to the Manual. For purposes of this Agreement, "Manual" means manuals or policies and procedures, Standards, specifications and requirements relating to the Rental Business, as Budget specifies. The Manual may be revised,
changed, modified or supplemented by Budget at any time. Modifications in the Manual will become effective thirty (30) days after written notice thereof to Licensee, unless a longer period is specified in such written notice. The Manual also includes training manuals, development manuals and other business manuals as may be prepared for use by Budget licensees. The Manual may be in printed and/or electronic format and may include audiotapes, videotapes, information available on an Internet site or other electronic media. It may also consist of several component parts and materials Budget may issue, including bulletins, handbooks, newsletters, computer-based and computer-transmitted information. The Manual is confidential and will remain Budget's exclusive property and may not be duplicated, shared or re-distributed. The Manual will be an integral part of this Agreement and references made in this Agreement or in any amendments, exhibits or schedules hereto to the Manual will be deemed to mean the Manual as current. In the event of a dispute relative to the contents of the Manual, the master copies maintained by Budget at its principal office will be controlling.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget will provide licensees with 30 days' written notice before modifications to the Manual become effective. The Manual includes policies, procedures, standards, specifications, and requirements relating to the rental business. However, the timeframe may be longer if specified in the written notice.
This means that Budget franchisees must adapt to changes in operational guidelines and standards within 30 days of notification, unless Budget provides a longer period. Franchisees need to be prepared to implement these changes promptly to maintain compliance with Budget's system standards.
The ability of Budget to modify the manual at any time gives them considerable control over the rental business operations. Franchisees should factor in the potential costs and operational adjustments needed to comply with these changes when evaluating the franchise opportunity. It is important for prospective franchisees to understand the scope and frequency of potential changes to the manual and how these changes might impact their business.