What written approvals are required from Budget regarding the location and layout of the Rental Business premises?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Location of Rental Business. The Rental Business may be operated only from the Location(s) pre-approved by Budget in writing according to Paragraph 8.3 and the Summary Pages (Section 4), and may be used only for the Rental Business and no other purpose without Budget's prior written consent, except where Budget has granted Licensee the right to operate non-exclusive Rental Businesses under this Agreement. Budget is not obligated to visit any specific site before declaring approval or disapproval.
- (b) Layout and Appearance of Rental Business. Licensee will submit to Budget for Budget's written approval, plans and specifications for the layout of each proposed location of the Rental Business. Upon Budget's approval, Licensee will promptly proceed to develop the Rental Business location in accordance with the Standards. No material changes will be made to the layout or appearance of any of the Rental Business during the term of this Agreement without Budget's prior written approval.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees must obtain written approval from Budget for both the location and the layout/appearance of their rental business premises. Specifically, the location must be pre-approved in writing by Budget, adhering to guidelines in Paragraph 8.3 and Section 4 (Summary Pages). This location can only be used for the Budget rental business unless Budget provides prior written consent for other purposes, except where the franchisee has the right to operate non-exclusive Rental Businesses. Budget is not required to visit any site before granting or denying approval.
For the layout and appearance, franchisees are required to submit plans and specifications for each proposed location to Budget for written approval. Once approved, the franchisee must develop the location according to Budget's standards. Any significant changes to the layout or appearance during the term of the agreement also require Budget's prior written approval.
These requirements ensure that all Budget locations meet the brand's standards and maintain a consistent image. This protects the brand's reputation and ensures customers have a uniform experience across all locations. For a prospective franchisee, this means they will need to work closely with Budget to find an acceptable location and design a layout that meets Budget's specifications, which could potentially add time and costs to the initial setup process.