What is the Commission Reimbursement Payment for a Budget franchise based on?

According to Budget's 2025 Franchise Disclosure Document, the Commission Reimbursement Payment is based on the actual commissions that Budget must pay on behalf of the franchisee to travel sources or similar booking sources for commissionable rentals. These travel sources or booking sources are selected by Budget to be eligible for special compensation as part of a promotion or program and will be processed through Budget Centralized Commission Services (BCCS).

Budget may calculate compensation payments as a percentage of revenue, a flat dollar amount, or any other calculation method Budget selects. A rental transaction may be eligible for compensation with any vehicle type, rate type/code (including discounted rates), rental period, and/or any other category of rental deemed appropriate for promotions or programs. The standard commission paid to travel sources referring business to Budget is 5%.

This means that as a Budget franchisee, you are responsible for reimbursing Budget for the commissions they pay to travel sources that refer customers to your location. The amount you owe will depend on the specific commission agreements Budget has with these travel sources and the volume of rentals they generate for your franchise. The current commission percentages are mandatory for Budget Franchises, but Budget may revise them in the future to meet business objectives. All reservations that travel sources generate for your Budget Franchise must be reconciled through BCCS, whether made directly with the travel source or received from the Reservation Center. The payment is due 45 days from the date of the Licensee Settlement Statement.