Besides Reservation Fees payable to Budget, what other fees related to reservations will a Budget licensee pay?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the Reservation Fees payable to Budget or one of its Related Entities, Licensee will pay to certain, but not all, third party travel agencies the then-current Global Distribution System Fees ("GDS") identified in the Summary Pages (Section 10(e)).
- 7.5 Travel Agency Commissions.
Licensee will participate in all Budget-approved programs for the centralized payment of travel agency commissions, will comply with Budget rules and regulations relating thereto, and will ensure that all such commissions are promptly paid in accordance with System policy.
Currently, travel agency commissions are identified in the Summary Pages (Section 10(f)).
If such commissions are not timely paid, Budget will have the right, but not the duty, to pay such commissions and bill Licensee for such commissions.
Should Licensee fail to pay travel agent commissions when due, Budget has the right to cease all reservations which Budget, or any third party, transmits to Licensee until all amounts due to Budget or any third party are paid in full.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, in addition to reservation fees, a licensee may incur other expenses related to reservations. Licensees may be required to pay Global Distribution System Fees (GDS) to certain third-party travel agencies, as specified in the Summary Pages (Section 10(e)). Additionally, Budget licensees will participate in Budget-approved programs for centralized payment of travel agency commissions, ensuring these commissions are promptly paid according to System policy, with details outlined in the Summary Pages (Section 10(f)).
Budget has the right, but not the duty, to pay any travel agency commissions that the licensee fails to pay and then bill the licensee for those commissions. If a licensee fails to pay travel agent commissions when due, Budget can cease all reservations transmitted to the licensee until all amounts due are paid in full. This could significantly impact the licensee's business operations if reservations are halted.
Furthermore, Budget may prepare a monthly composite statement containing specific charges and credits related to various programs. Licensees must pay all amounts within this statement, including late fees, administrative fees, and any unresolved contested fees, within 45 days of the Composite Statement Date. Failure to adequately address any charges or credits within the 45-day review period will result in those amounts being considered final and payable. Budget has the discretion to apply payments to the oldest balances first and may modify the review period or standards with written notice to the licensee.