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SUBJECT DOSSIER · FDD 2024

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.

Other Franchises · disclosure-honesty grade · from public state filings
GRADE F · FAILS DISCLOSURE

Disclosure honesty

F
Transparency 1 / 5

Budget Rent A Car System Inc. discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.

Outlets1,350
Disclosed lawsuits16
Closure signals4 ceased
Investment
$625,500–$1,588,400
Total fees
7.5% of sales
Outlets
1,350
Closure signals
4 ceased, 1 terminated
Lawsuits
16
◢ FINDINGS
ITEM 19
No real earnings disclosure
The franchisor won't put owner profit in writing — you can't verify the pitch.
ITEM 20
4 outlets ceased operations
Franchised outlets declined 13→177→174→173 (2023-2025). Limited new franchise development.
ITEM 03
16 legal matters disclosed
Litigation in Item 3 signals how the franchisor treats its franchisees.

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

FeeDisclosedWhere it comes from
Initial franchise fee$50,000Item 5 — paid up front, before you open
Royalty7.5% of gross salesItem 6 — charged on revenue, not profit
Advertising fund0% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees7.5% of gross salesBefore rent, labor, food or debt service
Total initial investment$625,500 – $1,588,400Item 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 outlets1,350
Ceased operations4
Terminated by franchisor1
Transferred to new owners3
Closure rate0.3% 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 fees7.5% of saleslower than most (median 8%)
Startup costfrom $625,500pricier than 84% of peers
Disclosure honestyGrade Fless honest than most of the category
Closure rate0.3% of outletsbetter than most (median 1.5%)
Disclosed lawsuits16more 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.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

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.

LOW
MEDIAN
HIGH

See a full sample report → · 30-day guarantee

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.