What page of the FDD discusses Budget's requirements for prior approval of locations?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
o remove materials and signage containing the Marks. At Budget's option, Licensee agrees that whenever it seeks to operate from an airport, it will obtain the entry by the applicable airport authority into the Contingent Assignment of Airport Concession Agreement attached as Exhibit D or such other similar agreement previously approved by Budget in writing. Budget reserves the right to negotiate directly with some or all airport authorities in the Territory to obtain its own airport concession agreements, which it will sublease to Licensee. Licensee agrees to cooperate fully with Budget in its efforts, and to honor all of Budget's and its obligations under said Airport Concession Agreement.
- 8.3 Prior Approval of Locations. Each Location operated by Licensee will be subject to the prior written approval of Budget and will be managed by an employee of Licensee who has completed the instruction specified in Paragraph 4.1. Such approval will not constitute a representation by Budget regarding the profitability of a particular Location. Locations must adhere to the specific requirements listed in the Summary Pages (Section 4) and in accordance with the Standards. Budget will consider factors including market size, fleet requirements, proximity to airport or other commercial hub, traffic patterns and access, the availability of real estate in the given market and cost factors before declaring approval or disapproval.
- 8.4 Commencement of Operations. Licensee agrees to commence the operation of the Rental Business not later than the date specified in the Summary Pages (Section 9). Licensee will be deemed to have commenced operations of the Rental Business hereunder upon the opening of its first Location in the Territory.
8.5 Development of the Rental Business Premises.
- (a) Location of Rental Business.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Paragraph 8.3, titled "Prior Approval of Locations" discusses the requirements for location approval. This section states that each location operated by the franchisee requires Budget's prior written approval. The location must be managed by an employee who has completed the training specified in Paragraph 4.1. However, Budget's approval does not guarantee the location's profitability.
Budget considers several factors when evaluating a potential location, including market size, fleet requirements, proximity to airports or commercial hubs, traffic patterns, real estate availability, and cost factors. The franchisee must also adhere to the specific requirements listed in the Summary Pages (Section 4) and in accordance with Budget's standards.
Paragraph 8.5(a) further clarifies that the Rental Business may only be operated from locations pre-approved by Budget in writing, as detailed in Paragraph 8.3 and Summary Pages (Section 4). The location can only be used for the Rental Business unless Budget provides prior written consent for other purposes, except where Budget has granted the Licensee the right to operate non-exclusive Rental Businesses under the Agreement. Budget is not obligated to visit any specific site before declaring approval or disapproval.