What are 'National Accounts' as defined in the Budget franchise agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget will have the right to enter into service contracts with agencies and departments of the national, state/provincial, local and other governmental subdivisions; national and international industries and institutions; and other local, regional, national and international accounts (collectively, the "National Accounts").
Budget has the right to set minimum and maximum pricing to the extent permitted by law.
Licensee agrees to accept reservations, abide by all terms and rates and maintain the availability of Vehicles for rent to such National Accounts.
Licensee will service such National Accounts in the same manner as is required in this Agreement for other customers of Licensee or to provide such higher level of service for the National Account customers as required by the Standards, including maintaining and sharing with the Network information about the National Account and National Account customers.
Subject to the provisions of Paragraph 9.15, Licensee agrees to comply with all of the terms and conditions of all National Account programs, as Budget may establish and modify, including rebates, damage waivers and liability insurance coverage.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, National Accounts are defined as agencies and departments of national, state/provincial, local, and other governmental subdivisions; national and international industries and institutions; and other local, regional, national, and international accounts. Budget retains the right to enter into service contracts with these National Accounts.
As a Budget franchisee, you are obligated to accept reservations from these National Accounts, adhere to the terms and rates set for them, and ensure vehicle availability. You must also provide service to these accounts in the same manner as required for other customers, or provide a higher level of service as required by Budget's standards. This includes maintaining and sharing information about the National Account and its customers with the Budget network.
Budget also has the right to set minimum and maximum pricing for rentals to National Accounts, to the extent permitted by law. Furthermore, franchisees must comply with the terms and conditions of all National Account programs, including those related to rebates, damage waivers, and liability insurance coverage, as established and modified by Budget. Failure to properly service National Accounts can result in Budget providing the service themselves or licensing a third party to do so within the franchisee's territory.