Where does the Budget Rent A Car Administration Manual address property damage?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget has developed a system (the "System") for renting and leasing Vehicles (as defined below) and such other vehicles, without drivers, as may be approved by Budget in writing, which business is commonly known as a Budget Rent a Car business and more fully defined in Paragraph 1.2 (the "Rental Business"). Rental Businesses are conducted under certain trade names, trademarks and service marks, including "Budget," "Budget Rent a Car," and "Budget" with road designs, and their associated logos, color schemes and other existing or future trademarks, service marks, and indicia as designated by Budget (collectively the "Marks"). The System has acquired substantial good will through the efforts of Budget and its international network of mutually interdependent licensees and affiliate-owned operations (the "Network"). The System may be improved, further developed or otherwise modified by Budget through the use of standards, specifications and operating procedures prescribed by Budget in its Rent A Car Administration Manual (the "Manual"). The System will be the same for both Budget and its licensees and will be applicable to all Budget licensees (collectively, the "Standards").
Licensee shall be exclusively licensed by Budget to use the System and the Marks to conduct a Rental Business offering for rental the types of vehicles designed primarily for transporting passengers, including sport utility vehicles ("SUVs") of any size, crossovers, passenger vans of any occupancy and smaller than medium duty pick-up trucks. (collectively, the "Vehicles"). In executing this Agreement, Licensee shall operate the Rental Business in conformity with the Standards, to strictly comply with the provisions of this Agreement and conduct the Rental Business ethically, honestly and fairly. Licensee will not conduct the Rental Business in a manner, which may discredit or impair the value of the Rental Business, the System or the Marks. As an inducement to Budget's entering into this Agreement, Licensee represents to Budget that all information set forth in any and all applications, financial statements and submissions to Budget is true, complete and accurate in all respects and that there have been no misrepresentations or omissions in any application, statement or submission to Budget.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Budget Rent A Car Administration Manual (the "Manual") contains the standards, specifications, and operating procedures prescribed by Budget. While the document mentions that the manual exists and is used to improve, develop, or modify the Budget system, it does not explicitly state where the manual addresses property damage.
However, the FDD does discuss property damage in the context of customer responsibility and loss damage waivers (LDW). It states that customer responsibility laws in certain states limit the amount a car rental customer can be held liable for damage, loss, or theft of a rented car. Additionally, the FDD mentions that Budget requires franchisees to post a sign at each rental location stating that if a customer declines LDW and the rental car is damaged or stolen, Budget may charge the customer more than the cost of repairs or the fair market value of the vehicle.
Furthermore, the FDD indicates that franchisees must offer customers the option to purchase a Loss Damage Waiver (LDW), which waives any claim against the customer for collision or certain other damage to the rented vehicle, subject to conditions and limitations prescribed in the Standards and/or the Standard Rental Agreement. The franchisee may charge an additional fee for this waiver. The FDD also notes that the Federal Trade Commission has entered into consent orders with members of the rental industry, including Budget, prohibiting certain practices related to misrepresenting a renter's obligation to pay for vehicle damage or the value of a damaged vehicle.
Therefore, while the FDD does not pinpoint a specific section in the Budget Rent A Car Administration Manual that addresses property damage, it provides information on related topics such as customer responsibility, loss damage waivers, and legal regulations concerning damage to rental vehicles. A prospective franchisee should ask Budget for more specific details about where property damage is addressed in the Manual and what specific guidelines are provided.