Regarding receipts, does Budget include the value of a vehicle that has been lost or damaged?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
al contract or other document or electronic form of agreement that makes it impractical to place the required disclosure within the document or form, respondent shall devise other means to ensure that each renter receives the substance of the disclosure before entering into the rental agreement. The other means could include, but are not limited to, a separate disclosure document to be signed or initialed by the renter.
B. Failing to post at each Budget rental location a sign or placard clearly and prominently containing the following language:
If you decline LDW and the rental car is damaged or stolen, we may charge you between $x and $y (specify range of dollar amounts Budget may seek) more than the cost of repairs or the fair market value of the vehicle. Many insurance companies will not pay this. If yours does not, you will have to pay it. The sign or placard shall be of a size, and posted in a manner, reasonably calculated to elicit prospective renters' attention.
C. Failing to disclose in a clear and prominent manner in any communication seeking payment of any charge for loss of or damage to a rental vehicle, any part of the charge that is attributable to loss of turnback including, but not limited to, instances where the vehicle is totaled or stolen and respondent is seeking compensation based in whole or part on any turnback amount. This disclosure shall include an explanation of what loss of turnback means and how it was calculated.
II.
IT IS FURTHER ORDERED that respondent, its successors and assigns, and its officers, agents, representatives, and employees, directly or through any partnership, corporation, subsidiary, division, or other device, in connection with the promoting, offering for rental, or rental of any vehicle, in or for any rental location where it seeks loss of turnback or turnback value in any form for vehicles rented in that location, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, does forthwith cease and desist from misrepresenting, in any manner, directly or by implication:
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- the obligation of the renter to make any payment as the result of the loss of or damage to a rental vehicle; and
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- the value of a vehicle that has been lost or damaged.
III.
IT IS FURTHER ORDERED that no provision of this order is intended to preempt any state law, regulation, or administrative interpretation that may limit or prevent respondent from collecting loss of turnback from a renter.
IV.
IT IS FURTHER ORDERED that respondent shall pay into an interest-bearing escrow account designated by the Commission, under the control of the Commission's designated agent, the sum of $75,000 on or before five days from the date of service of this order. This shall fully satisfy all monetary claims asserted by the Commission in the complaint filed herein against this respondent and shall be used to provide redress to consumers who made a payment to respondent and to pay any attendant expenses of administration. if the Commission determines, in its sole discretion, that redress to consumers is wholly or partially impracticable, any funds not so used shall be deposited into the United States Treasury. No portion of respondent's payment shall be deemed a payment of any fine, penalty, or punitive assessment.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the receipts related to damaged or lost vehicles are addressed in several ways. If a Budget customer declines the Loss Damage Waiver (LDW) and the vehicle is damaged or stolen, Budget may charge the renter more than the cost of repairs or the fair market value of the vehicle. This potential charge, along with the fact that many insurance companies may not cover it, must be clearly disclosed to the customer.
For vehicle damage, Budget requires its licensees to provide itemized actual repair costs, full disclosure of these costs to the customer, and the customer's written authorization to charge these costs. An accident report must also be included. If a vehicle is damaged beyond repair due to violations of Intercity procedures, the responsible city (either the Receiving, Custodial, or Renting City) will purchase the vehicle from the Owning City at its book value as of the date of the damage. The book value is calculated based on the Owning City's actual cost, including rebates and taxes, less 2.083% depreciation per month from the purchase date.
In cases of theft from a Custodial City's lot, the Custodial City is responsible for paying the Owning City the current book value of the vehicle if it is not recovered within sixty days. These detailed procedures ensure that Budget franchisees follow consistent practices for handling financial responsibilities related to vehicle damage and loss, and that customers receive proper disclosures and documentation regarding any charges.