Under what circumstances is a Budget licensee responsible for paying the cost of customer surveys?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.19 Customer Surveys.
Licensee agrees to participate in and provide its full cooperation to facilitate all customer service surveys and follow-up programs conducted by on or on behalf of Budget.
Budget agrees to pay for the cost of such surveys conducted System-wide.
Licensee shall pay the cost of any surveys if conducted solely for the Licensee's Territory.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget generally covers the costs of customer surveys conducted system-wide. However, a Budget licensee is responsible for the expenses associated with customer surveys if those surveys are conducted specifically and solely for the licensee's territory.
This means that if Budget initiates a survey to assess customer satisfaction across the entire franchise system, Budget will bear the cost. However, if a franchisee wants to conduct a survey to gauge customer sentiment or gather feedback specific to their location or territory, that franchisee will be responsible for paying for that survey.
This distinction is important for prospective franchisees to understand, as it can impact their budgeting and operational decisions. Franchisees who want to gain a deeper understanding of their local customer base through surveys need to factor in the cost of these surveys as a business expense. It is advisable for potential franchisees to clarify with Budget the scope and cost of any potential surveys they might want to conduct in their territory to better plan their finances.