What expenses are covered by the Reservation Fee for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The Reservation Fee covers: (i) the operating expenses of the Reservation System, including expenses for the acquisition, maintenance, and enhancement of facilities, equipment, and personnel for the Reservation System; (ii) general overhead expenses in administering and processing reservations, which include the oversight of the operation, accounts payable processing, tax return preparation, internal audits, and partner and association expenses; (iii) administrative expenses in processing customer complaints (does not include amounts that Licensee must pay ABCR for resolving customer complaints); (iv) expenses related to the promotion of budget.com and other reservation channels and partnerships; and (v) reservations made by general consumers, tour licensees, or corporate customers who connect directly with the Reservation System.
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Reservation Fee covers several operating and administrative expenses related to the reservation system. Specifically, the fee covers the operating expenses for the Reservation System, including the costs associated with acquiring, maintaining, and enhancing the facilities, equipment, and personnel involved.
Additionally, the Reservation Fee covers general overhead expenses related to administering and processing reservations. This includes oversight of operations, accounts payable processing, tax return preparation, internal audits, and expenses related to partners and associations. It also covers administrative expenses for handling customer complaints, although it excludes any amounts the franchisee must directly pay to Budget for resolving those complaints.
Furthermore, the Reservation Fee contributes to the promotion of budget.com and other reservation channels and partnerships. It also applies to reservations made by general consumers, tour licensees, or corporate customers who connect directly with the Reservation System. The actual Reservation Fees range from $2.75 to $5.18 per reservation for those made through a Budget contact center, a Global Distribution System (GDS), the internet (including Budget.com), or a Direct Link. For international phone reservations, the fee is $11.50 per reservation.