What are the responsibilities of a Budget licensee regarding equipment and software to maintain compatibility with System operational and communication standards?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts**.
- 9.16 Computer and Other System Standards. Licensee agrees to purchase all components for, install and implement all accounting, inventory control, sales register, reservations, security programs and other computer hardware and software systems according to the Standards and as required under Paragraph 6.2 herein. Licensee understands and acknowledges that any such systems (and any modifications or additions thereto) may require the purchase, lease and/or license of equipment, including computer hardware and software programs, and the payment of licensing, maintenance or access fees to Budget, its affiliates or others for the use of such systems. Licensee will be required to install any new or modified systems within the time period specified by Budget. All computer hardware and software used by Licensee will be totally compatible with Budget's computer systems and will strictly conform to the Standards. Licensee will comply with Standards Budget develops with regard to use of websites in connection with the operation and/or promotion of Rental Business. Licensee will provide Budget or its designee 24 hour-a-day/7 day-a-week access to all information or data arising from or related to operation of the Rental Business that is utilized, stored, or contained in computer systems.
- 9.17 Inspection. So long as Licensee is not in default of any provision of this Agreement, Budget will have the right, not more than two (2) times per calendar year, after giving at least five (5) days prior written notice to Licensee, to send representatives to inspect the Rental Business, and to audit the books and records thereof, to determine the quality thereof and the faithfulness of Licensee's compliance with the provisions of this Agreement and the Standards. Once Licensee receives a notice of default under Paragraph 11.3, whether or not cured, Budget will have the right and without prior notice to Licensee, to so inspect the Rental Business and to so audit the books and records thereof, including running a credit or D&B check. Budget will bear the cost of all such inspections. Notwithstanding the preceding sentence, if such inspection
discloses that Licensee has failed to comply with any provision of this Agreement or the Standards in a manner that would permit Budget to terminate this Agreement pursuant to Paragraphs 11.3 or 11.4, Licensee shall bear the cost of such inspection, including normal daily compensation, traveling expenses, room and board.
- 9.18 Authorized Products and Services. Licensee will offer all products and services that Budget authorizes for the Rental Business.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, licensees must ensure that all computer hardware and software used are fully compatible with Budget's systems and strictly adhere to the company's standards. Licensees are responsible for purchasing, installing, and implementing all accounting, inventory control, sales register, reservations, security programs, and other computer hardware and software systems as per Budget's standards and requirements. This may involve purchasing, leasing, or licensing equipment, including hardware and software, and paying licensing, maintenance, or access fees to Budget, its affiliates, or other designated parties. Licensees must install any new or modified systems within the timeframe specified by Budget.
To maintain system compatibility, Budget requires that all equipment be approved before installation. Licensees can only use equipment that is on Budget's approved list. They are also responsible for maintaining and operating all equipment according to system standards and vendor specifications approved by Budget. If a licensee uses unapproved equipment or fails to properly install, maintain, and operate equipment, they will be liable for any resulting damage or expenses incurred by Budget and other system users. In such cases, Budget has no obligation to perform under the agreement, and the licensee must correct any nonconformity at their own expense as specified by Budget.
Budget may offer system training and on-site assistance for an additional charge to ensure the proper operation of the licensee's business within the system. Licensees must also ensure their personnel receive the necessary training to operate the equipment and utilize the system effectively. Budget also has the right to inspect the rental business and audit the books and records, up to two times per year with five days' notice, to ensure compliance with the agreement and standards. Licensees must also provide Budget or its designee 24/7 access to all information or data related to the rental business that is utilized, stored, or contained in computer systems.