How are concession fees for Budget's airport locations generally determined?

According to Budget's 2025 Franchise Disclosure Document, concession fees for airport locations are generally based on a percentage of total commissionable revenue, as defined by each airport authority. Some of these agreements include minimum annual guaranteed amounts.

For a Budget franchisee operating at an airport, this means a portion of their revenue will be paid to the airport authority as a concession fee. The exact percentage can vary depending on the specific agreement with each airport. This fee is an ongoing cost of doing business at the airport location.

The inclusion of minimum annual guaranteed amounts means that even if a franchisee's revenue is low, they may still be required to pay a minimum concession fee. This could impact profitability, especially during slow periods or in the early stages of operation. Franchisees should carefully review the specific concession agreements for their location to understand the potential financial obligations.

It's important for prospective Budget franchisees to inquire about the typical range of concession fee percentages and the details of any minimum annual guarantees for airport locations they are considering. Understanding these costs is crucial for accurate financial planning and assessing the potential profitability of a Budget franchise at an airport.