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

According to Budget's 2025 Franchise Disclosure Document, the warranty claim processing service charge is billed monthly. This service involves Budget reviewing, coding, and processing warranty repairs based on the guidelines set by the manufacturers.

The service charge is calculated as 10% of the total dollars that Budget collects from the manufacturer for approved warranty claims. This means that a franchisee's cost for this service will vary depending on the volume and value of warranty claims processed each month.

For a prospective Budget franchisee, this means that managing vehicle maintenance and warranty claims efficiently is important. By adhering to manufacturer guidelines and ensuring accurate claim submissions, franchisees can maximize their warranty claim approvals and potentially offset the 10% service charge with increased revenue from successful claims. Franchisees should factor this ongoing monthly expense into their financial projections and business planning.