Under what circumstances will a Budget Receiving City be charged back the difference for manual modifications to programmed charges?

According to Budget's 2025 Franchise Disclosure Document, a Receiving City will face a chargeback for unauthorized manual modifications to programmed charges under specific conditions related to vehicle drop-offs. If a customer drops off a Budget vehicle at a location different from the destination approved by the Renting City, this is considered an "Unauthorized Drop." The Receiving City is expected to close the rental contract and charge the customer according to the system's programmed settings.

However, if the Receiving City manually alters the programmed charges for such an unauthorized drop without obtaining authorization from the Renting City, Budget will charge back the difference to the Receiving City. This policy ensures that changes to rental agreements are controlled by the Renting City, which originally set the terms.

This chargeback policy has important implications for Budget franchisees. It emphasizes the need for clear communication and adherence to established procedures between the Renting City and the Receiving City. Franchisees must ensure their staff understands the protocol for handling unauthorized drop-offs and the importance of obtaining proper authorization before making any manual adjustments to charges. Failure to comply with these procedures can result in unexpected chargebacks, impacting the franchisee's revenue.

In general, this type of policy is not uncommon in the car rental industry, where vehicles are frequently rented in one location and returned to another. Franchisors often implement controls to maintain pricing consistency and prevent revenue leakage due to unauthorized modifications.