table_specific

What section of the Budget manual covers Accommodation Rate for Budget franchisees?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

sifications. Budget will have the right to impose Standards for all Vehicles, equipment, signs, materials and supplies used by Licensee in the Rental Business and to require that any such Vehicle or item be purchased exclusively from suppliers approved by Budget, which might include or be limited to Budget or one or more of the Related Entities.

  • 9.13 Acceptance of Vehicles. Licensee must accept and process all disabled Vehicles and other vehicles originating with other members of the Network and dropped off to Licensee as prescribed by Budget in the Standards or otherwise in writing.
  • 9.14 Forms. Licensee shall purchase forms to be used in the Rental Business from suppliers approved by Budget and whose forms meet Budget's then-current specifications. Licensee shall not modify or alter the forms without Budget's prior written consent. Budget may require Licensee to send to Budget copies of some or all vehicle rental agreements and other customer agreements. Licensee may use only forms that Budget approves and/or requires.
  • 9.15 Rental Rates. Budget may, advertise leisure rental rates as part of the promotional programs which it sponsors for the public. If Licensee communicates to Budget, by execution of a voluntary participation agreement or by another means required by Budget, that it has decided in its own discretion to comply with suggested leisure rental rates, including tour rates, Licensee will honor the agreed to rental rates and all of the other terms of such programs. Licensee acknowledges that Budget and others will rely on such communications. Licensee will, by the execution of this Agreement, be obligated to comply with, and adhere to, all rental rates set by Budget for National Accounts, including association discounts and corporate rates but excluding tour rates; provided however, Licensee will be allowed to impose surcharges on such rates for their locations where such surcharges have been negotiated with the National Accounts or are otherwise permitted under Budget pricing policies to compete with additional suppliers of the National 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.

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

What This Means (2025 FDD)

Based on the 2025 Budget Franchise Disclosure Document, there is no mention of "Accommodation Rate" in the provided excerpts. However, the Budget FDD does reference sections of the Budget manual that discuss rental rates in general. Specifically, section 9.15 addresses rental rates, stating that Budget may advertise leisure rental rates as part of its promotional programs. If a franchisee voluntarily agrees to comply with these suggested leisure rental rates, they must honor the agreed-upon rates and terms. Additionally, franchisees are obligated to adhere to rental rates set by Budget for National Accounts, excluding tour rates, although surcharges may be imposed under certain conditions.

Section 2.6 of the Budget FDD states that Budget may change any elements of the system, including introducing new products, services and standards. Licensee will promptly accept and implement all such changes at Licensee's expense and in accordance with the schedule prescribed by Budget.

As the FDD excerpts do not specifically address "Accommodation Rates", it would be prudent for a prospective Budget franchisee to ask the franchisor for clarification on whether "Accommodation Rates" are covered under the general "Rental Rates" policies, or if there are separate specific guidelines. Furthermore, it would be beneficial to inquire about how these rates are determined, the flexibility a franchisee has in setting these rates, and any potential impact on profitability.

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.