During the term of the Budget License Agreement, how many General Managers must a Budget franchisee employ?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
You must employ on a full-time basis, at all times during the term of your Budget License Agreement, at least one General Manager who has completed the instruction Budget furnishes and who will devote his or her entire time during normal business hours to the management, operation, and development of your Budget Franchise as required in the Standards and the Manual. Your General Manager need not have an equity interest in the Budget Franchise or in you. An on-premises supervisor must successfully complete Budget's training program.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 65)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees must employ at least one General Manager on a full-time basis throughout the term of the Budget License Agreement. This General Manager is required to have completed the training furnished by Budget and must dedicate their entire time during normal business hours to managing, operating, and developing the Budget franchise.
While Budget strongly encourages franchisees to participate personally in the direct operation of their franchise, it is not mandatory. However, the employment of a qualified General Manager is a firm requirement. This ensures that the franchise adheres to Budget's standards and operational guidelines, even if the franchisee is not directly involved in day-to-day management.
The General Manager does not need to have any equity interest in the Budget franchise. Franchisees must also notify Budget of any proposed changes to the General Manager position, and any replacement must complete Budget's prescribed training. This requirement helps Budget maintain consistent standards and operational quality across all franchise locations.
Budget also retains the right to periodically conduct criminal background and credit checks on the franchisee's officers, directors, and managers, including at the time of renewal. This oversight underscores Budget's commitment to ensuring that individuals in key management positions meet their standards for integrity and competence.