factual

Under what circumstance will Budget renters NOT incur fuel-related charges?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

IT IS ORDERED that Respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, marketing, promotion, offering for rent, or renting of any vehicle, shall not misrepresent, in any manner, expressly or by implication:

  • A. the renters who return their vehicle with a full gas tank will not incur any fuel-related charges;

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, renters who return the vehicle with a full gas tank will not incur any fuel-related charges. Budget is prohibited from misrepresenting this fact in any advertising or promotion. This requirement is part of a broader order that Budget must clearly and conspicuously disclose all fuel-related charges, fees, costs, and requirements at the time of the rental transaction, ensuring renters are fully informed before signing the rental contract. This includes disclosing how a renter can avoid these charges.

This stipulation is significant for prospective Budget franchisees as it highlights the importance of transparent communication with customers regarding fuel policies. Franchisees must ensure that their staff accurately convey the conditions under which renters can avoid fuel charges to maintain customer trust and avoid potential legal issues. The FDD emphasizes that all disclosures must be in understandable language and syntax, and no contradictory or mitigating information should be presented in advertising or promotional materials.

Furthermore, Budget is required to maintain records of all advertisements, promotional materials, and related documents for five years after their dissemination, making them available to the Federal Trade Commission upon request. This includes any evidence that contradicts or calls into question any representations made about fuel-related options. This underscores the need for franchisees to maintain meticulous records and ensure compliance with all advertising and disclosure requirements to avoid potential penalties or legal action.

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.