Can Budget set minimum and maximum pricing for National Accounts?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget will have the right to enter into service contracts with agencies and departments of the national, state/provincial, local and other governmental subdivisions; national and international industries and institutions; and other local, regional, national and international accounts (collectively, the "National Accounts").
Budget has the right to set minimum and maximum pricing to the extent permitted by law.
Licensee agrees to accept reservations, abide by all terms and rates and maintain the availability of Vehicles for rent to such National Accounts.
Licensee will service such National Accounts in the same manner as is required in this Agreement for other customers of Licensee or to provide such higher level of service for the National Account customers as required by the Standards, including maintaining and sharing with the Network information about the National Account and National Account customers.
Subject to the provisions of Paragraph 9.15, Licensee agrees to comply with all of the terms and conditions of all National Account programs, as Budget may establish and modify, including rebates, damage waivers and liability insurance coverage.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget has the authority to set both minimum and maximum pricing for National Accounts, provided that it is permitted by law. Licensees are obligated to accept reservations, adhere to the specified terms and rates, and ensure vehicle availability for these National Accounts.
Budget requires that licensees service National Accounts in accordance with the standards outlined in the agreement for all customers. This includes maintaining and sharing pertinent information about the National Account and its customers within the network. Franchisees must also comply with the terms and conditions of National Account programs, which may include rebates, damage waivers, and liability insurance coverage, as established and modified by Budget.
Licensees are obligated to adhere to the rental rates set by Budget for National Accounts, including association discounts and corporate rates, but excluding tour rates. However, licensees can impose surcharges on these rates at their locations if such surcharges have been negotiated with the National Accounts or are otherwise permitted under Budget's pricing policies to compete with other suppliers servicing those accounts. If a licensee fails to meet Budget's service requirements for National Accounts, Budget reserves the right to provide the service themselves or license a third party to do so within the licensee's territory.