What is the deadline for a Budget Licensee to pay Reservation Fees each month?

According to Budget's 2025 Franchise Disclosure Document, Licensees are required to pay Reservation Fees on or before the 20th day of each month, covering the fees for the preceding month. This means that Budget franchisees must ensure that all Reservation Fees are submitted by this deadline to avoid potential penalties or disruptions. These fees are for each reservation transmitted to the Licensee, regardless of whether the reservation results in an actual rental.

Budget may remove, suspend, or block a Licensee's right to receive reservations if Reservation Fees are not paid when due. This could significantly impact the franchisee's ability to conduct business, as reservations are a crucial source of revenue. Additionally, interest will accrue on any monies related to the Rental Business that are not received by Budget when due, starting from the day after the payment was originally due. Late fees will also be assessed on all past due amounts, including any past due late fees.

In addition to the standard Reservation Fees, Budget Licensees may also be required to pay Global Distribution System Fees (GDS) to third-party travel agencies. These fees, along with travel agency commissions, are identified in the Summary Pages of the FDD. Failure to pay travel agent commissions when due gives Budget the right to cease all reservations transmitted to the Licensee until all outstanding amounts are paid in full. Therefore, managing and paying Reservation Fees and other related fees promptly is critical for maintaining a Budget franchise in good standing and ensuring uninterrupted business operations.