What is the definition of 'Gross Revenue' according to the Budget License Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The Budget License Agreement defines "Gross Revenue" as "any and all sums of every nature and character (whether in cash, credit, or otherwise) payable (collected or uncollected) under closed rental agreements, vehicle lease agreements, sublicense agreements, or otherwise, in Licensee's operation of its Rental Business including time, mileage, damage or loss waiver, insurance products, service fees, surcharges, and any other charges for any ancillary goods or services provided directly or indirectly in connection with Licensee's Rental Business, including baby seats, navigational devices, portable XM radios and/or DVD players, tire chains, locks, ropes, hitches, pads, boxes, portable lifts, and other products and services associated with loading, unloading, securing contents and packing trucks and cars, and specifically excluding only the following: (a) any national, state/province, or local sales or other similar taxes separately stated, collected from customers and paid by Licensee to the applicable airport authority; (b) any amounts received as insurance proceeds or otherwise for damage to vehicles or other property of Licensee, or for loss, conversion, or abandonment of such vehicles; (c) revenue derived from the sale of fuel furnished at the time of rental; and (d) customer facility fees ("CFC"), collected from customers and paid by Licensee to the applicable governmental authority."
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Gross Revenue is comprehensively defined within the Budget License Agreement. It encompasses all income, regardless of its form (cash, credit, etc.) that is payable, whether collected or uncollected, from various sources related to the operation of the rental business. This includes revenue from closed rental agreements, vehicle lease agreements, sublicense agreements, and any other income derived from the operation of the Rental Business.
Specifically, Gross Revenue includes income from time and mileage charges, damage or loss waivers, insurance products, service fees, surcharges, and any other charges for ancillary goods or services provided directly or indirectly in connection with the Rental Business. Examples of these ancillary items include baby seats, navigational devices, portable XM radios and/or DVD players, tire chains, locks, ropes, hitches, pads, boxes, portable lifts, and other products and services associated with loading, unloading, securing contents and packing trucks and cars.
However, the definition explicitly excludes certain items from Gross Revenue. These exclusions are: (a) national, state/province, or local sales or other similar taxes separately stated, collected from customers and paid by the Licensee to the applicable airport authority; (b) amounts received as insurance proceeds or otherwise for damage to vehicles or other property of the Licensee, or for loss, conversion, or abandonment of such vehicles; (c) revenue derived from the sale of fuel furnished at the time of rental; and (d) customer facility fees (CFC), collected from customers and paid by Licensee to the applicable governmental authority. This detailed definition provides clarity for Budget franchisees in calculating their revenue and understanding their financial obligations to Budget.