Is Budget required to segregate the funds paid by the Budget licensee that Budget plans to use for advertising and promotion?

According to Budget's 2025 Franchise Disclosure Document, Budget is not obligated to segregate any funds paid by the licensee for advertising and promotion. These funds are not considered trust funds but are instead treated as general funds of Budget. This means that Budget has full control over how these funds are spent, and licensees do not have a specific claim or interest in how their marketing fees are allocated.

Budget has sole discretion over the advertising and promotion activities, including the creative concepts, formats, materials, geographic placement, and media allocation. Budget also decides on the sources used to develop and conduct advertising and promotion. This gives Budget significant flexibility in how it promotes the brand and supports the network.

For a prospective franchisee, this means that while you are required to pay monthly marketing fees, you have no guarantee that these funds will directly benefit your specific location or territory. Budget may choose to allocate these funds to national campaigns, experimental programs, or other initiatives that it believes will enhance brand awareness. It is important for potential franchisees to understand that they are contributing to a broader marketing effort and will not have direct control over how their contributions are used.