What are the responsibilities of the Renting City, Receiving City, or Exchange City regarding claims submitted under ALI, PAI & PAI Plus and PEP coverages according to the Budget FDD?

According to Budget's 2025 Franchise Disclosure Document, the Renting City, Receiving City, and Exchange City have specific responsibilities regarding claims submitted under ALI (Additional Liability Insurance), PAI & PAI Plus (Personal Accident Insurance), and PEP (Personal Effects Protection) coverages. The Renting City is responsible for processing all claims submitted under these coverages from start to finish. This includes handling all administrative tasks and making payments on the claims, as well as any underlying coverage provided to the renter as part of purchasing these coverages.

In contrast, the Receiving City or Exchange City is tasked with a different aspect of the claims process. Their responsibility is to obtain all necessary information and documents related to these claims. This division of labor suggests that the Renting City acts as the primary point of contact and processor for the claims, while the Receiving City or Exchange City supports this process by gathering the required documentation.

For a prospective Budget franchisee, this means understanding the specific roles each location plays in handling insurance claims. If you operate a Renting City location, you must be prepared to manage the entire claims process, including administration and payments. If you operate a Receiving City or Exchange City, your focus will be on collecting and providing the necessary documentation to support the claims. This coordinated approach ensures that claims are processed efficiently and accurately, while also providing renters with the coverage they purchased.