What agreement outlines the Reservation System Fees for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The Reservation System Fees are imposed under the Rental System Agreement, which you must sign along with the Budget License Agreement.
These fees are due for all reservations which are made for your Budget Franchise by customers, airlines, tour agencies, travel agents, Internet or e-commerce users, or otherwise through the reservation system during the preceding month.
These fees are incurred on all reservations, including reservations that ABCR attempts to send to you but you fail to accept for any reason.
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Reservation System Fees are detailed in the Rental System Agreement. Prospective Budget franchisees must sign this agreement along with the Budget License Agreement. These fees apply to all reservations made for the franchisee's location through various channels, including customers, airlines, tour agencies, travel agents, the internet, and e-commerce platforms.
The fees are incurred regardless of whether ABCR (presumably Avis Budget Car Rental) attempts to send a reservation that the franchisee fails to accept. This means franchisees are responsible for the fees even if they cannot fulfill a reservation request.
The Reservation Fee covers several operational aspects of the reservation system. These include the operating expenses for maintaining and improving the system's facilities, equipment, and personnel. It also covers general overhead expenses related to administering and processing reservations, such as oversight, accounts payable, tax preparation, internal audits, and partner/association expenses. Additionally, the fee covers administrative costs for handling customer complaints, although it excludes direct payments the franchisee might make to resolve customer issues. The fee also supports the promotion of budget.com and other reservation channels, as well as reservations made by various types of customers who connect directly with the Reservation System.