Does Budget require franchisees to use electronic funds transfer (EFT) for fee payments?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated, all fees are non-refundable and are uniformly imposed and collected by, and payable to, Budget. Budget may require you to pay by electronic funds transfer ("EFT"), in which case you must sign and deliver the documents necessary for Budget to implement this system and make the required funds available for withdrawal on or before the designated due date.
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget may require franchisees to pay fees via electronic funds transfer (EFT). If Budget requires EFT payments, the franchisee must sign and deliver the necessary documents to implement the system. Additionally, the franchisee must ensure the required funds are available for withdrawal on or before the designated due date.
This means that Budget has the option to mandate that franchisees use EFT for fee payments. If implemented, franchisees will need to comply with Budget's EFT system, which includes providing the necessary documentation and ensuring timely availability of funds. This requirement ensures that Budget can efficiently collect fees from its franchisees.
For a prospective franchisee, this implies a need to be prepared to adopt EFT as a payment method if required by Budget. Franchisees should inquire about the specific conditions under which EFT is mandated and the procedures for setting up and managing EFT payments. Understanding these requirements is crucial for managing cash flow and ensuring compliance with Budget's payment policies.