Can Budget require a Budget Licensee to use rental software from certain designated software providers?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 require its licensees to use rental software from specific providers. Specifically, Budget can mandate the use of designated software providers in conjunction with the Reservation System or any other reservation system that Budget designates.
This requirement means that a prospective Budget franchisee might not have the freedom to choose their own rental software. Instead, they must use the software that Budget specifies. This could have implications for the franchisee's costs, as they may need to purchase, lease, or license equipment, including computer hardware and software programs, and pay licensing, maintenance, or access fees to Budget, its affiliates, or others for the use of such systems.
Furthermore, all computer hardware and software used by the Budget licensee must be fully compatible with Budget's computer systems and strictly conform to the Standards. Budget also requires 24/7 access to all data related to the Rental Business that is stored in the computer systems. This ensures that Budget maintains oversight and control over the technology used within its franchise network, which is a fairly common practice in franchising to maintain brand consistency and data security.