table_specific

How often is the warranty claim processing fee billed to Budget franchisees?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

SERVICE DESCRIPTION SERVICE CHARGE
Warranty Claim Processing
Reviewing, Coding and Processing of Warranty repairs based on the guidelines set forth by the manufacturers. 10% of total dollars collected from the manufacturer, billed monthly.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, the warranty claim processing fee is billed monthly. This fee covers the review, coding, and processing of warranty repairs, adhering to the guidelines established by the manufacturers.

The service charge for warranty claim processing is 10% of the total dollars collected from the manufacturer. This means that Budget franchisees will be charged a percentage of the money they receive from manufacturers for approved warranty claims.

This monthly billing structure implies that franchisees need to manage their warranty claims efficiently to ensure timely processing and reimbursement. Franchisees should factor this ongoing cost into their financial projections and operational budgets. Understanding the manufacturer's guidelines for warranty repairs is also crucial to maximize claim approvals and minimize potential costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.