Budget Rent A Car
Bottom line
- Total investment $606K – $1.6M including a $30K franchise fee, 7.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- 15 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Budget Rent A Car unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Overview
About
Budget franchisees operate car rental locations serving leisure and business travelers. Day-to-day responsibilities include vehicle fleet management, customer check-in/check-out, damage assessment, invoicing, fuel upselling, and coordination with the corporate reservation system. Franchisees must manage local marketing, staffing, facility maintenance, and compliance with corporate operating standards across a protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Budget Rent A Car presents high risk due to a contracting franchise system, multiple active litigation exposures including consumer fraud class actions, FTC regulatory violations, and complete absence of financial disclosure—making ROI validation impossible before substantial capital commitment.
Score breakdown · what drove the 72 / 100 rating
- 01MINORDeclining unit count (-6.8% YoY) signals system contraction and reduced franchisee support infrastructure
- 02HIGHMultiple pending class actions for consumer fraud and deceptive practices indicate systemic operational or marketing issues
- 03MINORTwo FTC consent orders on fuel charges and damage disclosure suggest repeated regulatory violations and compliance failures
- 04MINORNo Item 19 financial performance disclosure prevents validation of claimed profitability and revenue potential
- 05MINORHigh initial investment ($605K-$1.57M) combined with 7.5% royalty creates significant fixed cost burden with unproven returns
- 06HIGHLabor law litigation and contractor misclassification claims suggest HR/compliance risk for franchisees
- 07MINORShrinking system with declining units reduces brand value, reservation volume, and corporate support resources
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
90 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Budget Rent A Car · FDD (2024) PDF