Under what conditions does Budget reserve the right to require a Budget Licensee to attend training?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Operating Assistance and Training; Correcting Deficiencies. Budget provides a comprehensive training program and provides additional courses, resources, webinars and training materials to assist Licensee in the training of its General Manager and employees in the operation of the Rental Business. Budget reserves the right to require Licensee to attend training, as it deems necessary and in its sole discretion, and Licensee shall be required to complete any initial training subject to the terms of this Paragraph 4.2. Budget will furnish to Licensee such operating training and assistance through regular notices and announcements concerning System developments on a continuing basis, as in Budget's judgment is reasonably necessary. All training may require, at Budget's sole discretion, the attendance and participation of Licensee, its principals, its General Manager, managerial personnel or other staff of the Rental Business. Licensee will bear all expenses associated with such training programs, including travel, lodging, meals and entertainment, if any. All training must be properly attended and/or completed timely and to Budget's satisfaction. Licensee will cooperate with Budget and its representatives in connection with all training and assistance provided by Budget and will promptly undertake to correct any deficiencies brought to Licensee's attention in connection therewith. If Licensee fails to correct any such deficiencies within the time Budget prescribes, then Budget may (but is not required to) correct, or cause the correction of, such deficiencies and Licensee will reimburse Budget for the reasonable costs and expenses it incurs in connection therewith.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget reserves the right to require its licensees to attend training as it deems necessary and in its sole discretion. This includes initial training, which the licensee is required to complete. The training may involve the attendance and participation of the licensee, its principals, its General Manager, managerial personnel, or other staff of the Rental Business.
This means that as a Budget franchisee, you and/or your employees may be required to attend additional training sessions beyond the initial pre-opening instruction. The FDD does not specify the exact reasons or situations that would trigger this requirement, only that Budget has sole discretion in determining the need for further training. This could be due to changes in company policy, new technologies, performance issues, or other factors that Budget believes necessitate additional training.
It is important to note that the franchisee is responsible for all expenses associated with these training programs, including travel, lodging, meals, and entertainment. Furthermore, the franchisee must ensure that all training is properly attended and completed to Budget's satisfaction. Failure to correct any deficiencies identified by Budget within the prescribed time frame may result in Budget taking corrective action at the franchisee's expense. Franchisees should inquire about the typical frequency and cost of such additional training to factor it into their business planning.