Budget Rent A Car System Inc. Franchise
Cost, fees, owner earnings, closure rate and litigation for a Budget Rent A Car System Inc. franchise — pulled from the franchisor's own public FDD (2024), not its sales material.
Disclosure honesty
Budget Rent A Car System Inc. discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Budget makes no representations about franchisee financial performance or company/franchised outlet past performance.
What a Budget Rent A Car System Inc. franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $50,000 | Item 5 — paid up front, before you open |
| Royalty | 7.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 0% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $625,500 – $1,588,400 | Item 7 — franchisor's own low/high estimate |
7.5% royalty; $0.22/transaction system charge; $320 Wizard setup; extensive IT/network infrastructure fees ranging $480-$12,000+ annually.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Budget Rent A Car System Inc. system size and owner turnover
| Total outlets | 1,350 |
| Ceased operations | 4 |
| Terminated by franchisor | 1 |
| Transferred to new owners | 3 |
| Closure rate | 0.3% of outlets |
Franchised outlets declined 13→177→174→173 (2023-2025). Limited new franchise development.
From Item 20 of the FDD 2024. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Budget Rent A Car System Inc. worth it? — how it compares to 436 similar franchises
| Ongoing fees | 7.5% of sales | lower than most (median 8%) |
| Startup cost | from $625,500 | pricier than 84% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.3% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 16 | more litigious than 97% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Budget Rent A Car System Inc.
The franchisor's framing: Budget makes no representations about franchisee financial performance or company/franchis… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Budget Rent A Car System Inc. franchise — frequently asked
- How much does a Budget Rent A Car System Inc. franchise cost?
- The FDD lists a total initial investment of about $625,500–$1,588,400, including a $50,000 initial franchise fee.
- How much do Budget Rent A Car System Inc. franchise owners make?
- Budget Rent A Car System Inc. discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Budget Rent A Car System Inc. franchise fees?
- Budget Rent A Car System Inc.'s FDD discloses a $50,000 initial franchise fee, a 7.5% royalty on gross sales, a 0% advertising-fund contribution, for roughly 7.5% of gross sales in recurring fees before rent, labor, or debt service. 7.5% royalty; $0.22/transaction system charge; $320 Wizard setup; extensive IT/network infrastructure fees ranging $480-$12,000+ annually.
- What is the Budget Rent A Car System Inc. franchise profit margin?
- Budget Rent A Car System Inc. discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Budget Rent A Car System Inc. franchise failure rate?
- Franchised outlets declined 13→177→174→173 (2023-2025). Limited new franchise development.
- How many Budget Rent A Car System Inc. locations are there?
- Budget Rent A Car System Inc.'s FDD reports 1,350 total outlets, with 4 that ceased operations in the most recent reporting year and 3 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Budget Rent A Car System Inc. have complaints or lawsuits?
- Budget Rent A Car System Inc. discloses 16 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Budget Rent A Car System Inc. franchise worth it?
- It depends on the numbers, not the pitch. Budget Rent A Car System Inc. scores F on disclosure honesty, carries about 7.5% of sales in ongoing fees, and discloses 16 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2024). FranchiseValidate is independent and not affiliated with Budget Rent A Car System Inc. or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.