Under what condition will Budget refund the transfer fee to a transferring Budget licensee?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
the closing date of the transfer: - a. All amounts due Budget whether pursuant to the Budget License Agreement or otherwise; - b. All amounts due to other members of the Network, which Budget may, at its discretion, collect on behalf of those members; and - c. All amounts due any other creditors for products delivered, services rendered or otherwise, including but not limited to, taxes, travel agent commissions, phone bills, facility/location rent, airport concession fees, and other payables incurred in the conduct of the Rental Business as of the closing date of the transfer, which Budget may, at its discretion, collect on behalf of the creditor.
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- Provide all final documentation (i.e., corporate resolutions, lease and airport
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a transferring licensee may receive a refund of the transfer fee under a specific condition. The document states that Budget will refund the transfer fee if the transfer does not go through because Budget refuses to approve the transfer.
This means that if a Budget licensee seeks to transfer their license to another party, they must first request Budget's approval and pay a transfer fee of $2,500, which may be subject to CPI-U adjustments. Additionally, the transferring licensee is responsible for covering any out-of-pocket expenses Budget incurs during the transfer review and approval process, although these expenses are capped at $7,500.
However, if Budget ultimately decides not to approve the proposed transfer, the transferring licensee will not be held responsible for the transfer fee, and Budget will refund any transfer fee already paid. This provision protects the transferring licensee from incurring the transfer fee expense if the transfer is blocked by Budget itself.