What must a transferee do to comply with the terms of Budget's License Agreement, Programs, and Conditional Consent Letter?

According to Budget's 2025 Franchise Disclosure Document, a proposed transferee must execute and comply with all the terms of Budget's then-current License Agreement, Programs, and any terms outlined in Budget's Conditional Consent Letter. The royalty fee structure applied to the License Agreement executed by the transferee will align with the existing Budget License Agreement of the transferring licensee.

Furthermore, the proposed transferee is required to make necessary operational improvements to bring the rental business into reasonable compliance with the system's current operating standards. These improvements may include upgrades to the fleet, facilities, signage, personnel, and promotional participation. This ensures that the business aligns with Budget's standards and maintains a consistent brand image.

In practical terms, this means a prospective Budget franchisee taking over an existing location must be prepared to not only adhere to the current franchise agreement and operational guidelines but also invest in upgrades to meet Budget's standards. This could involve significant capital expenditure depending on the condition of the existing business. It is important for potential transferees to carefully review the Conditional Consent Letter and assess the operational improvements needed to ensure compliance and maintain a successful Budget franchise.