What costs does ABCR include when increasing or decreasing the Budget service charge?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
SYSTEM SERVICE CHARGES
- As consideration for ABCR's processing Transactions in Wizard and providing Licensee access to the System, Licensee will initially pay to ABCR a service charge of $.574 per Transaction (the "Service Charge"). ABCR will bill Licensee monthly for Transactions executed during the prior month. Commencing on the first January 1st after the execution of this Agreement
EXHIBIT I BUDGET FDD
and on each January 1st thereafter during the term of this Agreement, the Service Charge may be increased or decreased by ABCR to reflect any increases or decreases in ABCR's cost of operati
TO RESERVATION FEES
OPERATING EXPENSES
Reservation processing costs:
Computer processing charges and reports In Watts, automated reservation processing charges Out Watts, telex and telephone charges Terminal depreciation, network, maintenance and other costs, telephony hardware Transborder reservation adjustments
Advertising, Marketing and Promotion:
Frequent Renter Program Yellow pages advertising Worldwide directory productions Third party reservation promotions
Occupancy:
Rent –all Contact Centers Utilities and repairs Equipment rental and depreciation
Personnel:
Recruiting and training Salaries and wages Taxes and fringe benefits
General and Administrative:
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the System Service Charge that Budget franchisees pay to ABCR may be adjusted annually on January 1st to reflect changes in ABCR's operating costs.
The costs that ABCR considers include reservation processing costs such as computer processing charges and reports, charges for Watts, automated reservation processing, Out Watts, telex and telephone charges, terminal depreciation, network, maintenance and other costs, telephony hardware and transborder reservation adjustments.
ABCR also considers advertising, marketing and promotion costs including frequent renter program, yellow pages advertising, worldwide directory productions and third party reservation promotions. Occupancy costs such as rent for all contact centers, utilities and repairs, and equipment rental and depreciation are also considered. Personnel costs including recruiting and training, salaries and wages, and taxes and fringe benefits are factored in, as well as general and administrative costs.