Over what period does Budget recognize membership fees related to its car sharing business?

According to Budget's 2025 Franchise Disclosure Document, membership fees related to its car sharing business are generally nonrefundable. Budget defers these fees and recognizes them ratably over the period of the membership.

This means that Budget does not recognize the entire membership fee as revenue immediately upon receipt. Instead, the revenue recognition is spread out evenly over the duration of the membership. For example, if a customer pays a $120 membership fee for a year, Budget would recognize $10 of revenue each month.

This accounting practice provides a more accurate reflection of when Budget earns the revenue, as it aligns the revenue recognition with the period during which the member is entitled to use the car sharing services. This is a common accounting practice, especially for services provided over a specific duration.