factual

What is Budget's role in furnishing instruction to the General Manager and other employees for operating a Budget Franchise?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

G**

Except as listed below, Budget need not provide you with any assistance.

Before the Opening of Your Budget Franchise.

Before you open your business, Budget will:

  1. Approve the trade name for your Budget Franchise (the Budget License Agreement, initial recital of parties).
    1. Designate your territory. Your authorization to operate a Budget Franchise is limited to an authorized geographic area (the Budget License Agreement, paragraph 1.5, the Summary Pages) (see Item 12).
    1. Furnish your General Manager and other employees Budget approves with instruction on the operation of a Budget Franchise, as further described in this Item (the Budget License Agreement, paragraphs 4.1 and 4.2).
    1. Calculate your Initial License Purchase Fee (the Budget License Agreement, paragraph 7.1 and the Summary Pages) (see Item 5).
    1. Establish minimum annual License Fees based on your territory and the expected business demand in that territory (the Budget License Agreement, paragraph 7.2) (see Item 6).
    1. Establish a minimum number of rental offices for your territory, based on the expected business demand and any needs of the airport and central business district in your territory (the Budget License Agreement, paragraph 8.1 and the Summary Pages).
    1. Establish the deadline for you to open your Budget Franchise. If you fail to find a location that Budget approves and open and begin operating your Budget Franchise within the time period Budget specifies, Budget may terminate your Budget License Agreement (the Budget License Agreement, paragraph 8.4 and the Summary Pages).
    1. Approve your selection of one or more locations that meet Budget's criteria, which must be within your licensed territory (see Item 12). In approving the location(s) for your Budget Franchise, Budget's Licensee Relations Department will consult with and assist you, but Budget does not own or lease the locations at which Budget Franchises operate. When determining whether to approve a location for your Budget Franchise, Budget will consider factors such as traffic count, demographics, rent, suitability for use as a Budget Franchise, exposure, parking, and proximity to the central business district. Budget usually approves or disapproves of your selection within two weeks. You may not open a location for your Budget Franchise without Budget's approval (the Budget License Agreement, paragraph 8.3).
    1. Establish your initial automobile requirements (the Budget License Agreement, paragraph 8.1 and the Summary Pages).
    1. Establish average annual market penetration quotas, based on the territory assigned to your Budget Franchise and the expected market demand in that territory (the Budget License Agreement, paragraph 8.1 and the Summary Pages).
    1. Budget will lend you one copy of the Manual and any other manuals Budget provides for franchisees. The Manual is confidential and remains Budget's property. Budget may modify the Manual as Budget determines useful to preserve or enhance the efficient operation, image, or goodwill of Budget's Proprietary Marks and Budget Franchises, but any modification will not alter your status or rights under the Budget License Agreement. You may view the Manual in confidence if you sign and return a Confidentiality Agreement to Budget (See Exhibit D). You must return the Manual and any other manuals to Budget when required under the Budget License Agreement (the Budget License Agreement, Article III) (see Item 8).
    1. Provide you information concerning the equipment, signs, fixtures, supplies, and vehicles that you will need to develop and operate your Budget Franchise (the Budget License Agreement, paragraphs 9.11 and 9.12) (see Items 7 and 8). We will provide a list of
  • approved vendors and specifications related to equipment, signs fixtures, opening inventory and supplies. However, we will not deliver or install these items.

    1. We do not provide assistance with conforming the premises to local ordinances and building codes and obtaining any permits, and/or constructing, remodeling, or decorating the premises, and/or hiring and training employees.

During the Operation of Your Budget Franchise.

During the operation of your Budget Franchise, Budget will:

    1. Furnish a representative and additional resources through web-based training seminars, field visits, or other programs, at its expense, to train and assist your General Manager and employees in the operation of your Budget Franchise, as in Budget's judgment is necessary (the Budget License Agreement, paragraphs 4.1 and 4.2).
    1. Furnish operating training and assistance through web-based training seminars, representatives, or other training programs requiring your (and/or your managers') attendance as deemed necessary by Budget (the Budget License Agreement, paragraph 4.2).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, Budget furnishes instruction to the General Manager and other approved employees for operating a Budget franchise. Before opening, Budget will furnish the General Manager and other approved employees with instruction on the operation of a Budget Franchise. During the operation of the franchise, Budget will furnish a representative and additional resources through web-based training seminars, field visits, or other programs, at its expense, to train and assist the General Manager and employees in the operation of the Budget Franchise, as Budget deems necessary. Budget will also furnish operating training and assistance through web-based training seminars, representatives, or other training programs requiring the franchisee's and/or their managers' attendance as deemed necessary by Budget.

Budget offers web-based training through Workday Learning, allowing franchisees and their approved employees to complete training on any device with web access. Franchisees and their approved employees must complete the program to Budget's satisfaction, actively participating in and completing all web-based sessions in a timely manner. Initial training must be completed at least 30 days before opening the business. The training content includes instruction and information on multiple topics such as Wizard and WaND (GUI) point of sale, Customer Service and Counter Sales.

Budget may periodically add new and refresher web-based training programs and seminars and may require the franchisee, their General Manager, and other managerial personnel to satisfactorily complete these. Budget communicates the requirement to complete such web-based training programs and seminars via System Bulletins. The franchisee and/or their General Manager also must attend any periodic conventions or seminars that Budget holds for the Network. The franchisee must bear all of their and their personnel's cost of attending these programs, conventions, and seminars, including travel, lodging, meals, and wages.

Laura Lirio is the Global Senior Director of Organizational Development for ABCR and supervises the training program. Ms. Lirio has held her current title since November 2022. Should on-the-job training or instruction at a different location be required, the instructors will have at least one year of experience in the car rental industry. Instructors also may be members of the Licensee Relations Department.

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.