What is the process for a Budget licensee to contest charges on the Composite Statement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
If Budget so chooses to use a Composite Statement, Licensee will pay to Budget (or its designated affiliate) all amounts contained within the Composite Statement, including any late fees, administrative fees
and/or any contested fees that have not been resolved as further described below, within forty-five (45) days of the Composite Statement Date. Licensee will have forty-five (45) days from the Composite Statement Date, to contest and adequately address any charges or credits on the Composite Statement in accordance with the Standards (the "Review Period"). Licensee agrees that any changes or credits not properly contested or addressed within the Review Period will be considered final, due and payable to Budget (or its designated affiliate) pursuant to this Paragraph 7.8 and the Rental System Agreement. Budget (or its designated affiliate), at its sole discretion, will first apply any payments that it receives to the oldest balances first and may modify the Review Period or any of the Standards relating to the Composite Statement upon written notice to the Licensee.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget licensees receive a monthly composite statement that includes various charges and credits. Licensees have 45 days from the date of the composite statement to review, contest, and adequately address any charges or credits. This 45-day period is referred to as the "Review Period."
To contest charges, the licensee must follow the standards outlined in the License Agreement. Any charges or credits not properly contested or addressed within the Review Period are considered final and must be paid to Budget (or its designated affiliate). Budget has the discretion to modify the Review Period or the standards related to the Composite Statement, but they must provide written notice to the licensee.
Budget, at its sole discretion, will apply any payments received to the oldest balances first. This means that if a licensee has outstanding balances, any payments made will be applied to those older debts before any contested fees. It is important for prospective franchisees to understand these procedures for contesting charges, as failure to adhere to the Review Period and standards can result in the licensee being responsible for the full amount of the disputed charges.