What does the 'Turn Back Exceptions' report detail for Budget franchisees?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget may specify periodic reports Licensee will submit to Budget and require Licensee to submit these forms electronically.
Budget also reserves the right to prepare (or cause one of its Related Entities to prepare) and make available to Licensee a monthly composite statement ("Composite Statement") for the Territory which will contain specific charges and credits relating to various programs including, the Programs referenced in Article VI.
If Budget so chooses to use a Composite Statement, Licensee will pay to Budget (or its designated affiliate) all amounts contained within the Composite Statement, including any late fees, administrative fees
and/or any contested fees that have not been resolved as further described below, within forty-five (45) days of the Composite Statement Date. Licensee will have forty-five (45) days from the Composite Statement Date, to contest and adequately address any charges or credits on the Composite Statement in accordance with the Standards (the "Review Period"). Licensee agrees that any changes or credits not properly contested or addressed within the Review Period will be considered final, due and payable to Budget (or its designated affiliate) pursuant to this Paragraph 7.8 and the Rental System Agreement. Budget (or its designated affiliate), at its sole discretion, will first apply any payments that it receives to the oldest balances first and may modify the Review Period or any of the Standards relating to the Composite Statement upon written notice to the Licensee.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, there is no mention of a 'Turn Back Exceptions' report for Budget franchisees within the provided excerpts. The document does outline various reports that Budget may require franchisees to submit, including electronic submissions of periodic reports. Budget also reserves the right to prepare a monthly composite statement containing specific charges and credits related to various programs. Franchisees have a review period of 45 days from the composite statement date to contest any charges or credits, after which they are considered final and payable.
Without specific details on a 'Turn Back Exceptions' report, it's difficult to assess its implications for a prospective franchisee. However, the FDD excerpts do highlight the importance of understanding Budget's reporting requirements and payment obligations. Franchisees are responsible for ensuring their records are complete, as incomplete records may result in Budget estimating Gross Revenue based on similar rental businesses.
To gain a comprehensive understanding, prospective Budget franchisees should inquire directly with Budget about the existence, purpose, and content of any 'Turn Back Exceptions' reports. Understanding all required reports and their implications is crucial for managing the financial aspects of the franchise effectively.