Can Budget waive or charge Initial License Purchase Fees that differ from the standard calculation?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
d by the United States Census Bureau and updated regularly by a consulting company.
Budget reserves the right to waive or charge Initial License Purchase Fees greater or less than that specified above based on a variety of factors, including certain characteristics of your territory (for example, the existence of an airport, resort, large hotel, university, or other prime commercial rental location; whether you are converting an existing business; and the level of competition in your territory). Initial License Purchase Fees are not uniform and not refundable under any circumstances.
You must also pay a one-time Wizard Connection Start Fee of $320.00 per workst
Source: Item 5 — INITIAL FEES (FDD page 16)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget has the discretion to adjust the Initial License Purchase Fees based on various factors. The standard Initial License Purchase Fee is calculated based on the population of the territory, starting at $45,000 for a territory with a population of 50,000 or less, and increasing by $5,000 for each additional 5,000 in population.
However, Budget reserves the right to either waive the fee entirely or charge a different amount, either higher or lower than the standard calculation. This decision is influenced by factors such as the presence of an airport, resort, large hotel, university, or other prime commercial rental location within the territory. Whether the franchisee is converting an existing business and the level of competition in the territory are also considerations.
This flexibility in setting the Initial License Purchase Fee means that prospective Budget franchisees may find opportunities to negotiate the fee based on the specific characteristics of their territory. However, it also introduces an element of uncertainty, as the fee is not uniformly applied. It is important to note that the Initial License Purchase Fees are non-refundable under any circumstances.
In addition to the Initial License Purchase Fee, franchisees must also pay a one-time Wizard Connection Start Fee of $320.00 per workstation before beginning operations on the Wizard system. This fee is separate from the Initial License Purchase Fee and covers the cost of connecting each workstation to Budget's Wizard system.