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For Budget rentals, what is the consequence if the Receiving City manually modifies programmed charges on an Unauthorized Drop without Renting City authorization?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. If a customer drops a Vehicle at a location that is not the destination approved by the Renting City, the Receiving City will close the contract and charge the customer as the system is programmed.
    • a. Any manual modification to programmed charges on an Unauthorized Drop, that the Renting City did not authorize, will result in a charge back of the difference to the Receiving City.
    • b. Unauthorized Drop A vehicle dropped at a location other than the destination entered and approved, by the Renting City, on the contract.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, if the Receiving City manually modifies programmed charges on an Unauthorized Drop without authorization from the Renting City, Budget will charge back the difference to the Receiving City. An Unauthorized Drop is defined as a vehicle dropped off at a location different from the destination approved by the Renting City on the rental agreement.

This policy ensures that the Renting City maintains control over the initially agreed-upon charges and prevents the Receiving City from unilaterally altering those charges without proper authorization. It also makes the Receiving City financially responsible for any unauthorized modifications, which incentivizes them to adhere to the established procedures and seek authorization before making changes.

For a prospective Budget franchisee, this means that it is crucial to ensure that all modifications to rental agreements are properly authorized and documented in the Wizard system. Failure to do so could result in financial penalties in the form of chargebacks. Franchisees should train their staff to follow the correct procedures for handling vehicle drop-offs and modifications to avoid these penalties.

This type of policy is fairly common in the rental car industry, as it helps to maintain consistency and accountability across different locations. It is important for franchisees to understand and comply with these policies to ensure smooth operations and avoid unnecessary financial burdens.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.