Does Budget have an obligation to ensure that its advertising expenditures in any geographic area are proportionate to the License Fees paid by Budget licensees in that area?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget undertakes no obligation to ensure that its expenditures in or affecting any geographic area will be proportionate or equivalent to the License Fees or any other fees paid by licensees operating in that geographic area.
Budget does not guarantee that any licensee will benefit directly from Budget's advertising and promotion expenditures, nor does Budget guarantee the distribution of advertising in any quantity or format, to or for any particular licensee or licensees, or in any area, which includes a particular licensee's territory.
Budget will have no obligation to segregate any funds paid by Licensee to Budget which Budget plans to expend for advertising and promotion, nor will any such funds be deemed trust funds but rather will be deemed general funds of Budget.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget is not obligated to ensure that advertising expenditures in any geographic area are proportionate or equivalent to the License Fees paid by licensees in that area. Budget's advertising expenditures are intended to maximize recognition of the brand and patronage of all rental businesses. These expenditures may also be used to support experimental or test programs that Budget believes will enhance brand awareness.
Budget does not guarantee that any licensee will directly benefit from advertising and promotion expenditures. Nor does Budget guarantee the distribution of advertising in any quantity or format to any particular licensee or area.
Budget has sole discretion over how Monthly Marketing Fees are spent on advertising and promotion. Licensees have no right, claim, or interest in how Budget allocates these funds. Budget also has no obligation to segregate any funds paid by the licensee for advertising and promotion, and these funds are considered general funds of Budget.