Can Budget require a Budget franchisee to use rental software from certain designated software providers?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
designate. Licensee will display any promotional programs, including special suggested rate promotions as a result of agreements Budget enters into with National Accounts. Licensee must provide service to the National Accounts in accordance with Budget's requirements. If Licensee fails to do so, in addition to other remedies available to Budget under this Agreement, Budget will have the right, without notice to Licensee, to provide (or license a third party, including a Related Entity, to provide) service to one or more National Accounts in the Territory.
6.2 Reservation and Rental Systems. 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"); (c) accept and honor all reservations received through the Reservation System or otherwise from other Network operators, if required, and to transmit all reservations which it is requested to place by any customer to the appropriate Network operator, if required, without charge to the customer, and without fee to the receiving operator, other than as required by the Standards or the Reservation Agreement; (d) adhere to the rental rates that it places in, or has another place in, the Reservation System or any other reservation system; (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; (f) reserve for Budget the right to require Licensee to connect to other designated reservation systems and process through such system all rental transactions entered into with customers in the Rental Business; and (g) reserve for Budget the right to require Licensee to use rental software from certain designated software providers in conjunction with the Reservation System or any other reservation system that Budget designates.
6.3 Customer Complaint Programs. Licensee shall comply with all of the terms and conditions of all then-current customer complaint programs as required by the Standards; the cost to administer the current program is included as part of the Reservation Fee. Further, Budget shall handle customer complaints subject to the Budget Licensee Customer Adjustment Procedure (the "Customer Adjustment Procedure"). Under the Customer Adjustment Procedure, Budget shall have the right to resolve disputes at Budget's discretion between Licensee and its customers and issue payments to customers on the Licensee's behalf. Budget shall have the right to charge back Licensee up to the amounts of the total rental charges incurred by the customer for the rental transaction. The resolution amount is billed to the Licensee's Composite Statement (as described in Paragraph 7.9).
6.4 Payment Programs. Licensee agrees to accept such credit cards, vouchers, tour vouchers and other forms of payment from its customers, and otherwise to participate in and comply with all of the terms and conditions of payment programs, as required by the Standards.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget has the right to mandate that franchisees utilize rental software from specific providers. Specifically, Budget can require franchisees to use designated software in conjunction with the Reservation System or any other reservation system that Budget designates.
Furthermore, Budget requires franchisees to purchase, install, and implement accounting, inventory control, sales register, reservations, security programs, and other computer hardware and software systems according to Budget's standards. These systems must be compatible with Budget's computer systems and conform strictly to the established standards. Franchisees may also be required to purchase, lease, or license equipment, including hardware and software, and pay licensing, maintenance, or access fees to Budget, its affiliates, or other designated entities for using these systems.
Budget also retains the right to inspect the Rental Business and audit the books and records to ensure compliance with the franchise agreement and standards. If an inspection reveals non-compliance that would permit Budget to terminate the agreement, the franchisee will bear the cost of the inspection, including compensation, travel expenses, and room and board. This ensures that Budget franchisees maintain a uniform standard of performance and adhere to the technological requirements set forth by the franchisor.