factual

Who is responsible for covering the travel and living expenses incurred by the General Manager and other employees when receiving pre-opening instruction from Budget?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 4.1 Pre-opening Instruction. Prior to the opening of the Rental Business (or commencement of operations as a result of a transfer), Budget will furnish, and the General Manager (as described in Paragraph 9.1 and the Summary Pages (Section 5)) and such other employees of Licensee as are approved by Budget will attend and complete a comprehensive training program for the operation of a Rental Business, and any additional required courses, to Budget's satisfaction. The instruction will be furnished at the time and place and in such manner as designated by Budget. Should travel be required, Licensee will pay all travel and living expenses incurred by the General Manager and any of its other employees receiving the instruction.
  • 4.2 Operating Assistance and Training; Correcting Deficiencies. Budget provides a comprehensive training program and provides additional courses, resources, webinars and training materials to assist Licensee in the training of its General Manager and employees in the operation of the Rental Business. Budget reserves the right to require Licensee to attend training, as it deems necessary and in its sole discretion, and Licensee shall be required to complete any initial training subject to the terms of this Paragraph 4.2. Budget will furnish to Licensee such operating training and assistance through regular notices and announcements concerning System developments on a continuing basis, as in Budget's judgment is reasonably necessary. All training may require, at Budget's sole discretion, the attendance and participation of Licensee, its principals, its General Manager, managerial personnel or other staff of the Rental Business. Licensee will bear all expenses associated with such training programs, including travel, lodging, meals and entertainment, if any. All training must be properly attended and/or completed timely and to Budget's satisfaction. Licensee will cooperate with Budget and its representatives in connection with all training and assistance provided by Budget and will promptly undertake to correct any deficiencies brought to Licensee's attention in connection therewith. If Licensee fails to correct any such deficiencies within the time Budget prescribes, then Budget may (but is not required to) correct, or cause the correction of, such deficiencies and Licensee will reimburse Budget for the reasonable costs and expenses it incurs in connection therewith.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, the franchisee (referred to as the "Licensee") is responsible for covering the travel and living expenses incurred by the General Manager and any other employees when they attend pre-opening instruction provided by Budget. This instruction is a comprehensive training program that Budget requires the General Manager and other approved employees to complete prior to the opening of the Rental Business.

This means that a prospective Budget franchisee needs to factor in these training-related travel and accommodation costs when budgeting for the initial investment. The FDD does not specify the location or duration of this training, so the franchisee should contact Budget to get an estimate of these costs. These expenses are in addition to the franchise fee and other initial setup costs.

In the event that Budget requires additional training for the General Manager or other staff during the operation of the Rental Business, the franchisee will also be responsible for all associated expenses, including travel, lodging, meals, and entertainment. This highlights the ongoing investment required to maintain the standards and operational requirements set by Budget.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.