Under what conditions will Budget require a Licensee to participate in an electronic funds transfer program for payments?

According to Budget's 2025 Franchise Disclosure Document, Budget has the right to require licensees to participate in an electronic funds transfer (EFT) program. Under this program, all license fees and any other payments due to Budget or its related entities, as outlined in the License Agreement or any other agreement between the parties, will be transferred electronically from the licensee's bank account to a bank or financial institution specified by Budget. This participation will be in accordance with Budget's standards. However, Budget is not allowed to directly access the licensee's bank account.

This means that as a Budget franchisee, you may be required to set up an electronic funds transfer system to pay all fees owed to Budget. This includes license fees, reservation fees, and any other payments outlined in your agreements. The EFT program ensures that Budget receives timely payments and streamlines the payment process.

While Budget can mandate participation in the EFT program, they cannot directly access your bank account, providing a level of financial control for the franchisee. Franchisees should be aware of the specific standards and procedures Budget has in place for the EFT program to ensure compliance and avoid any potential issues with payments. Franchisees should also confirm which 'Related Entities' payments may be directed to.