factual

What standards regulate the age and quality of automobiles offered for rental or sale by a Budget franchisee?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

The Budget License Agreement and the Standards regulate age and other standards of quality regarding the automobiles you offer for rental or sale.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 65–66)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, the Budget License Agreement and the Standards regulate the age and other standards of quality regarding the automobiles a franchisee offers for rental or sale.

Budget requires franchisees to rent only the types of motor vehicles that Budget specifies. While Budget does not currently limit the make or model of automobiles offered for rent, it may impose these restrictions in the future. The Budget License Agreement limits the class of vehicles a Budget Franchise may rent, prohibiting the rental of trucks (excluding SUVs of any size, crossovers, passenger vans of any occupancy, and smaller than medium duty pickup trucks), motorcycles, snowmobiles, ATVs, bicycles, horse-drawn vehicles, or other similar vehicles without Budget's consent.

To maintain a uniformly high standard of performance among all Budget Rent A Car businesses, franchisees must develop and operate their Budget Franchise in strict compliance with the Budget License Agreement and all standards, specifications, and operating procedures that Budget designates, including the Budget Rent A Car Administration Manual (the "Manual"), as Budget may periodically modify them (the "Standards"). If Budget requires, a franchisee's Budget Franchise must use the vehicle models that Budget periodically specifies in the Standards or otherwise in writing. Budget does not currently specify makes or models for the vehicles that Budget Franchises rent, but franchisees must maintain all vehicles in a clean and presentable condition and maintain the quality standards that Budget periodically specifies for vehicles. Budget will notify franchisees in the Manual and in other written or electronic communications of the Standards (and modifications to the Standards).

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.