factual

Is participation in the Wizard online reservation system mandatory for a Budget franchisee, and why?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

Wizard is an online, real time reservations system.

Participation in Wizard is mandatory because Budget considers Wizard to be a significant part of the Budget Rent A Car System.

Under the Budget License Agreement, you must enter into a Rental System Agreement with ABCR that governs your use of Wizard. Wizard generates and stores reservation, rental, and customer data, to which Budget has unlimited, independent access. Under the Rental System Agreement you must acquire, install, and maintain certain computer hardware software and communications equipment, which will vary depending on whether you choose to connect to Wizard via the Internet. Your estimated cost to acquire and install such equipment per connected workstation is approximately $3,000–$4,500. If you choose to use a PC, your estimated cost to acquire and install such equipment per workstation is approximately $1,500 with monthly costs estimated at approximately $190. These amounts are per workstation and will vary based on the number of workstations that you have. If you choose to access Wizard through the Internet, you must also obtain Internet access through an Internet Service Provider and implement computer security standards and procedures.

If you choose to access Wizard through Thin Client, a PCI-compliant infrastructure, your estimated cost to acquire and install such equipment per connected workstation is approximately $7,000–$13,000 plus $565 if you choose Signature Capture, an electronic signature system. Monthly costs for Thin Client will vary widely based on the Site Survey results; however, we estimate monthly costs at approximately $600– $1,600 if you choose to connect via MPLS Frame Circuit and $175–$900 for an Aruba/DSL Based Network Solution. Local internet service provider fees are additional. A Site Survey must be conducted prior to the implementation of Thin Client to determine the network and physical needs of your Location. The Site Survey must be conducted by a Budget approved third-party supplier and the fees for the Site Survey are paid by you directly to the supplier.

ABCR will provide ongoing repairs, maintenance upgrades, or upgrades to Wizard as necessary. You must purchase, lease, or otherwise acquire, from sources Budget designates or approves (which might include or be limited to Budget or its affiliates), computer hardware, software and communications equipment that is totally compatible with and strictly conforms to the requirements of the Rental System Agreement as Budget may modify those requirements during the term. Budget cannot estimate the annual cost of maintenance or upgrade obligations and their associated costs. There are no contractual limitations on the frequency or cost of your obligations under this section of the Budget License Agreement.

Budget and its designees will have independent access to the Wizard system and all other computer systems, hardware, and software you use. Budget and its designees may access all information and software on such systems and there is no limitation on such access. There are no contractual limits upon our access to your computer information.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, participation in the Wizard online reservation system is mandatory for franchisees. Budget considers Wizard to be a significant part of the Budget Rent A Car System.

The FDD states that under the Budget License Agreement, franchisees must enter into a Rental System Agreement with ABCR that governs the use of Wizard. The Wizard system generates and stores reservation, rental, and customer data, to which Budget has unlimited, independent access. Franchisees are responsible for acquiring, installing, and maintaining the necessary computer hardware, software, and communications equipment to connect to Wizard. The estimated cost for this equipment varies depending on the chosen connection method.

If a franchisee chooses to connect to Wizard via the Internet, the estimated cost is $3,000–$4,500 per connected workstation, or approximately $1,500 with monthly costs estimated at approximately $190 if using a PC. Alternatively, franchisees can access Wizard through Thin Client, a PCI-compliant infrastructure, with an estimated cost of $7,000–$13,000 per connected workstation, plus $565 for the optional Signature Capture system. Monthly costs for Thin Client range from $600–$1,600 with MPLS Frame Circuit and $175–$900 for an Aruba/DSL Based Network Solution, excluding local internet service provider fees. A Site Survey, conducted by a Budget-approved third-party supplier and paid for by the franchisee, is required before implementing Thin Client to assess network and physical needs.

Budget will provide ongoing repairs, maintenance, and upgrades to Wizard as necessary. Franchisees must acquire compatible computer hardware, software, and communications equipment from sources designated or approved by Budget, which may include Budget or its affiliates. Budget cannot estimate the annual cost of maintenance or upgrade obligations, and there are no contractual limitations on the frequency or cost of these obligations. Budget and its designees have independent and unlimited access to the Wizard system and all other computer systems, hardware, and software used by the franchisee.

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.