Under what circumstances does a Budget Exchange City have automatic authorization to reimburse customers for out-of-pocket road expenses?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
is subject to state law.
- a. The Owning City, if aware of fines, will provide the Renting City with traffic violation fines immediately upon notification so they can charge the customer, and must bill the Renting City to recover any costs associated with paying traffic violations.
- b. Wizard locations that do not have access to IAJ must contact the station adjustment department at the Virginia Beach Processing center to have the charges added to the rental agreement. [stationadjustmentsvab@avisbudget.com.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, an Exchange City, which is a Budget location providing breakdown assistance, has automatic authorization to reimburse customers for out-of-pocket road expenses under specific conditions. The Exchange City and/or ERS (Emergency Road Service) can reimburse customers up to $250 for on-the-road expenses. This reimbursement is completed within the Wizard system on the rental contract.
This authorization specifically covers expenses resulting from a vehicle's mechanical failure that is not the customer's fault. However, this provision excludes situations where customers report stolen vehicles or require lodging due to accidents. This means that if a Budget customer experiences a mechanical issue with their rental car that necessitates immediate, out-of-pocket expenses to get back on the road, the Exchange City can directly compensate them up to the $250 limit without needing additional approval from the Renting City.
For a prospective Budget franchisee, this policy means they need to be prepared to handle such reimbursements promptly and efficiently. They should ensure their staff is trained to use the Wizard system to process these reimbursements and understand the specific circumstances under which the authorization applies. It also highlights the importance of accurately assessing the cause of the mechanical failure to determine if it falls under the covered conditions, as reimbursements are not authorized for customer-caused issues, stolen vehicles, or accident-related lodging.