During the Budget vehicle turnback process, who assumes all liability if damage occurs?

According to Budget's 2025 Franchise Disclosure Document, the Owning City assumes all liability if damage occurs during the vehicle turnback process. The FDD outlines the responsibilities of both the Owning City and the Custodial City in the turnback or wholesale of vehicles. The Owning City determines which vehicles are eligible for turnback or wholesale, places vehicles on turnback or wholesale status, communicates with the Custodial City, assumes liability for damage during turnback, and handles communications with the inspection company or MRC.

In contrast, the Custodial City is responsible for not renting a vehicle in turnback or wholesale status, returning the vehicle to the MRC or auction within fourteen days of check-in or status update, inspecting and preparing the vehicle for turnback, arranging transport to the MRC turnback location or auction, and notifying the owner once the vehicle has been transported. The Custodial City receives a preparation fee of $45 from the Owning City, which includes shuttling to the auction within twenty-five miles. Oil changes are billed separately.

This division of responsibilities and liabilities is crucial for Budget franchisees to understand, as it clarifies who bears the financial risk for any damage occurring during the turnback process. Franchisees operating as Custodial Cities need to ensure they follow the procedures carefully to avoid any potential disputes or liabilities, while being aware that the Owning City is ultimately responsible for damage during the turnback process.