How is the resolution amount charged to a Budget franchise under the Budget Licensee Customer Adjustment Procedure?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The Rental System Agreement imposes Budget Licensee Customer Adjustment Procedure.
Under this Procedure, your Budget Franchise authorizes Budget's Customer Relations Department to resolve disputes at Budget's discretion between you and your customer and issue payments to the customer on your behalf up to the amount of the total rental charges to the Customer.
The resolution amount is then charged to your Budget Franchise via the monthly Licensee Settlement Statement.
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to the 2025 Budget Franchise Disclosure Document, the Budget Licensee Customer Adjustment Procedure involves Budget's Customer Relations Department resolving disputes between a franchisee and their customer. As part of this process, Budget is authorized to issue payments to the customer on behalf of the franchisee, up to the total amount of the rental charges. The franchisee grants this authorization to Budget.
The resolution amount, representing the payment made to the customer to resolve the dispute, is then charged to the Budget franchise. This charge appears on the monthly Licensee Settlement Statement, providing a record of the adjustment.
Specifically, Budget is authorized to pay up to $150 to resolve a customer complaint without obtaining prior approval from the franchisee. Adjustments exceeding $150, however, require Budget to contact the franchisee for approval before issuing the payment. This ensures that the franchisee has control over larger adjustments and can participate in the resolution process. The payment is due 45 days from the date of the Licensee Settlement Statement.