Under what circumstances will the final Budget Exchange City receive 100% of all rental revenue?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Operators will share rental revenue in accordance with Addendum A, with the exception that
- a. The final Exchange City will receive one hundred percent (100%) of all revenue if,
- i. The entire rental period is less than one day: OR
- ii. A previous Exchange was done, and the Vehicle was on the Rental Agreement less than twenty-four (24) hours.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the final Exchange City will receive 100% of all rental revenue under specific conditions related to vehicle exchanges. Rental Revenue is defined as Time & Mileage including Upsell revenue.
The first condition is if the entire rental period is less than one day. This means that if a vehicle is rented and returned within a 24-hour period, the final exchange city will be entitled to the full rental revenue generated from that transaction.
The second condition is if a previous exchange was done, and the vehicle was on the rental agreement for less than twenty-four (24) hours. This implies that if a vehicle has already been exchanged once, and then exchanged again within 24 hours of the first exchange, the final exchange city will receive 100% of the revenue. This provision likely aims to compensate the final exchange location for the short-term use of the vehicle under these circumstances.