FDD Analysis 2025 FDD

Budget Rent A Car System Inc. Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Budget Rent A Car System Inc.'s FDD, including franchise costs (Item 7), ongoing fees (Item 6), and unit growth trends (Item 20).

What the Budget Rent A Car System Inc. FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Not disclosed by this franchisor

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$625,500 - $1,588,400
Franchise Fee$45,000

Investment Breakdown

Initial License Purchase Fee(2)$50,000 - $50,000
Construction, remodeling, decorating, and leasehold improvements(3)$15,000 - $50,000
Furniture, fixtures, other fixed assets, and equipment(4)$15,000 - $28,000
Signage(5)$10,000 - $25,000
3 months’ rent and security deposits(6)$9,000 - $18,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee7.5% of gross sales
Marketing/Advertising Fee—

Other Ongoing Fees

Costs for Directory ListingsVaries
Transfer FeesVaries
InspectionVaries
InterestVaries
Cost of Correcting DeficienciesVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

No Item 19 Disclosure

Budget Rent A Car System Inc. does not provide a Financial Performance Representation in their FDD. Franchisors are not required to disclose this information.

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

1,371

Total Units

-3

Net Growth (YoY)

-0.2%

Growth Rate

Franchised Units174
Company-Owned Units1,197

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

No Revenue Disclosure

Without Item 19 data, you'll need to conduct your own due diligence on unit economics by speaking directly with existing franchisees.

Related Resources

Budget Rent A Car System Inc. Overview

Full franchise profile and details

Is Budget Rent A Car System Inc. Worth It?

Investment analysis and evaluation

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