Under what conditions is a missed vehicle assignment occurrence not billable between Budget locations?

According to Budget's 2025 Franchise Disclosure Document, a missed vehicle assignment between Budget locations is not billable if another licensee-owned vehicle was used in place of the originally assigned vehicle. This means that if a Custodial City (the location responsible for assigning the vehicle) fails to assign the correct vehicle to a reservation, but then uses a vehicle owned by another Budget franchisee to fulfill that reservation, the Owning City (the location that owns the vehicle that was missed) cannot bill the Custodial City for the missed assignment.

This provision encourages Budget franchisees to work together and utilize available resources within the network. By using another licensee's vehicle, the Custodial City can still meet the customer's needs and avoid potential penalties associated with failing to fulfill the reservation altogether. This promotes customer satisfaction and helps maintain the overall reputation of the Budget brand.

However, it's important to note that this exception only applies if another licensee-owned vehicle is used. If the Custodial City uses a vehicle from a different source (e.g., a vehicle from a competitor or a vehicle not properly registered within the Budget system), the missed assignment may still be billable. Franchisees should ensure they understand the specific conditions under which missed assignments are billable or not to avoid potential disputes and maintain positive relationships with other franchisees within the Budget network.