What is the range of required spending for grand opening promotions for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
icitation of prospective Budget Franchise owners. Franchisees may submit written requests to obtain an accounting of the marketing fees. The marketing fees are not audited. Currently, we do not charge a marketing fee to franchisees.
Budget may require that you spend $2,000 to $5,000 for grand opening promotions. Budget currently does not, but may require in the future that you spend an amount equal to 2% of the Gross Revenues of your Budget Franchise on local advertising annually. Budget has the right to review all advertising and promotional materials that you use prior to their use. Budget currently does not conduct regular reviews of each licensee's materials, but you are required to develop materials that are in good taste
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, Budget may require franchisees to spend between $2,000 and $5,000 for grand opening promotions. This is a potential cost that franchisees need to factor into their initial investment. While Budget does not currently mandate this spending, they reserve the right to do so in the future.
In addition to the grand opening promotion requirement, Budget currently does not, but may require in the future that franchisees spend an amount equal to 2% of their Gross Revenues on local advertising annually. This provides Budget with the flexibility to implement a local advertising requirement based on a percentage of revenue, which could significantly impact a franchisee's ongoing expenses.
Budget also retains the right to review all advertising and promotional materials used by franchisees before their use, ensuring that these materials align with Budget's standards and legal requirements. While Budget does not currently conduct regular reviews, franchisees are responsible for ensuring their materials are in good taste, comply with the law, and adhere to Budget's Proprietary Marks and Standards. This highlights the importance of franchisees understanding and adhering to Budget's advertising guidelines to avoid potential issues.