Is the Rental System Agreement included as a contract in the Budget FDD?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
- c) For as long as Avis Budget Car Rental operates the Budget Reservation System domestically on a nonprofit basis, prepare a profit and loss statement for the reservation system and reconcile the applicable fees and expenses, and, within ninety (90) days adjust the fees for the then current year (including any retroactive adjustment to the beginning of the then current calendar year) (Rental System Agreement, paragraph II.3.) (see Item 6); and
- d) Pay travel agencies commissions or other similar booking sources for referral of customers through the Budget Reservation System by one central payment method (Rental System Agreement**, Schedule F3**).
- e) During the term of the Rental System Agreement, Budget will comply with the Rental System Agreement's terms and conditions, and pay the fees it describes, for Budget Rent A Car locations that it operates.
[Item 23: RECEIPTS]
Licensee agrees to: (a) participate in a reservation system (the "Reservation System"), which is now in effect, which may be modified or which may hereafter be instituted by Budget, in its sole discretion; (b) execute and comply with all of the terms and conditions of any rental system agreement with Budget or a Related Entity that Budget may designate in its sole discretion, or any amended or substitute agreement governing participation in the Reservation System (the "Reservation Agreement"); (e) if required by Budget in its sole discretion, execute and comply with all of the terms and conditions of the Rental System Agreement (the "Rental System Agreement") with a Related Entity designated by Budget.
WHEREAS, Licensee is a party to a Rental System Agreement with Avis Budget Car Rental, LLC ("ABCR") whereby Licensee receives rental agreement processing services from ABCR in connection with Licensee's Budget Rent A Car business and has access to the Wizard System ("Wizard"); and
- (a) All capitalized terms used and not defined herein will have the same meaning ascribed to such terms in the Rental System Agreement.
- (a) This Addendum will become effective on the date of execution and will be coterminous with Licensee's Rental System Agreement. In the event Licensee's Rental System Agreement is terminated, then this Addendum will terminate as provided in paragraph (c) below. In the event this Addendum is terminated, such termination will have no impact on the effectiveness of Licensee's Rental System Agreement.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Rental System Agreement is referenced in several places. Item 11 mentions the Rental System Agreement in the context of the Budget Reservation System, stating that Avis Budget Car Rental will prepare a profit and loss statement and adjust fees related to the reservation system as per paragraph II.3 of the Rental System Agreement. It also mentions that travel agencies receive commissions through the Budget Reservation System according to Schedule F3 of the Rental System Agreement. Furthermore, Budget itself will comply with the terms and conditions of the Rental System Agreement and pay the fees it describes for its own locations during the agreement's term.
Item 23 also refers to the Rental System Agreement, indicating that a licensee may be required to execute and comply with the Rental System Agreement with a Related Entity designated by Budget. Additionally, an addendum included as Exhibit I discusses the relationship between the Licensee, Avis Budget Car Rental (ABCR), and the Rental System Agreement, noting that the addendum's term is coterminous with the Licensee's Rental System Agreement and that termination of the Rental System Agreement would affect the addendum.
While the FDD references the Rental System Agreement and its terms, it does not explicitly state that the full agreement is attached as an exhibit. A prospective franchisee should confirm with Budget whether the complete Rental System Agreement is included as an exhibit or if it is a separate document provided during the franchising process.