factual

Can Budget unilaterally issue new Standards, operating procedures, policies and guidelines in the Manual pertaining to the System for Budget franchisees?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding the preceding sentence, Licensee understands and agrees that Budget may unilaterally issue new (or amend or modify existing) Standards, operating procedures, policies and guidelines in the Manual pertaining to the System.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, Budget has the authority to unilaterally issue new or modify existing Standards, operating procedures, policies, and guidelines within the Manual pertaining to the System.

This means that as a Budget franchisee, you are obligated to adhere to any changes Budget makes to the Manual. These changes can encompass various aspects of the business, including operational standards, procedures, and policies. Franchisees will receive written notice of these modifications, which will typically become effective 30 days after the notice, although Budget can specify a longer period.

The Manual is an integral part of the franchise agreement, and Budget retains exclusive ownership of it. Franchisees must implement these changes at their own expense and according to Budget's prescribed schedule. This could involve investments in new equipment, software, or training to comply with the updated standards.

This unilateral power is a common practice in franchising, allowing franchisors to maintain consistency and adapt to changing market conditions across the franchise network. However, it also means franchisees must be prepared for potential unexpected costs and operational adjustments throughout the term of their agreement with Budget.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.