How are one-way vehicle rentals priced at Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Rates
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- Vehicles will be rented at the Renting City's then-current one-way rates for one-way rentals.
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- Local rentals will be rented at the Renting City's then-current standard local rates.
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- Other exceptions that waive, or reduce the rate, Intercity fee, or charges, are optional at the discretion of the Owning City.
- Violations of rate procedures for One-Way and local rentals will be billed to the Renting City. The Owning City is authorized to bill the Custodial City for the difference of the rate-shopped result from Wizard system generated rates.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, one-way vehicle rentals are priced at the renting city's current one-way rates. This means that the price a customer pays for a one-way rental is determined by the specific location where the rental originates. The FDD also notes that exceptions to these rates, such as waivers or reductions of the intercity fee or other charges, are optional and at the discretion of the owning city.
Violations of these rate procedures for one-way and local rentals will be billed to the renting city. The owning city has the authority to bill the custodial city for the difference between the rate-shopped result and the rates generated by the Wizard system. The Wizard system appears to be Budget's internal system for managing rates and reservations.
Prospective Budget franchisees should understand that while the renting city sets the initial one-way rental rate, the owning city has some control over discretionary exceptions. Franchisees must also adhere to the rate procedures to avoid being billed for violations, and be aware of the potential for rate adjustments based on the Wizard system's calculations. Understanding the interplay between renting, owning, and custodial cities, as well as the Wizard system, is crucial for managing one-way rentals effectively and avoiding penalties.