What section of the Budget Rent A Car Administration Manual covers the abandonment of property?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Gross Revenue" will, for purposes of this Agreement, mean any and all sums of every nature and character (whether in cash, credit or otherwise) payable (collected or uncollected) under closed rental agreements, vehicle lease agreements, sublicense agreements, or otherwise, in Licensee's operation of its Rental Business including time, mileage, damage or loss waiver, insurance products, service fees, surcharges and any other charges for any ancillary goods or services provided directly or indirectly in connection with Licensee's Rental Business, including baby seats, navigational devices, portable XM radios and/or DVD players, tire chains, locks, ropes, hitches, pads, boxes, portable lifts, and other products and services associated with loading, unloading, securing contents and packing trucks and cars and specifically excluding only the following: (a) any national, state/province or local sales or other similar taxes separately stated, collected from customers and paid by Licensee to the applicable airport authority; (b) any amounts received as insurance proceeds or otherwise for damage to vehicles or other property of Licensee, or for loss, conversion or abandonment of such vehicles; (c) revenue derived from the sale of fuel furnished at the time of rental; and (d) customer facility fees ("CFC"), collected from customers and paid by Licensee to the applicable governmental authority.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
Based on the 2025 FDD, the specific section of the Budget Rent A Car Administration Manual that covers the abandonment of property is not explicitly mentioned. However, the term "abandonment" is referenced in the context of calculating Gross Revenue. Specifically, amounts received as insurance proceeds or otherwise for the abandonment of vehicles are excluded from Gross Revenue.
While the FDD does not detail the procedures for handling abandoned vehicles, it does indicate that Budget has developed a system for renting and leasing vehicles, outlined in its Rent A Car Administration Manual (the "Manual"). This manual contains the standards, specifications, and operating procedures that Budget licensees must follow. The manual is accessible to licensees and may be revised or modified by Budget at any time, with changes becoming effective 30 days after written notice, unless otherwise specified.
Prospective franchisees should inquire with Budget about the specific policies and procedures in the Manual regarding the handling of abandoned vehicles. Understanding these procedures is crucial for managing assets, insurance claims, and overall financial reporting. Knowing how Budget defines and handles abandoned property will help franchisees ensure compliance and minimize potential losses.