factual

What facilities, equipment, and personnel does ABCR agree to provide for the Reservation System for Budget franchisees?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT I (b) Solicitation and Transmission of Reservations. ABCR agrees to provide facilities, equipment and personnel for the Reservation System that may be reasonably necessary for the

solicitation, reception and transmission of national and international reservations for and on behalf of Licensee.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, ABCR agrees to provide the facilities, equipment, and personnel that may be reasonably necessary for the solicitation, reception, and transmission of national and international reservations for and on behalf of the Budget franchisee.

This means that ABCR is responsible for maintaining and operating the reservation system that Budget franchisees use to receive bookings. This includes ensuring the system has the necessary infrastructure to handle reservation requests from various sources, such as phone calls, online bookings, and travel agencies, both domestically and internationally.

For a prospective Budget franchisee, this indicates that the franchisor takes responsibility for the core technology and staffing required to manage the reservation system. However, the franchisee is responsible for paying reservation fees to ABCR, which cover the operating expenses of the Reservation System, including expenses for the acquisition, maintenance and enhancement of facilities, equipment, personnel, marketing, customer relations and corporate overhead for the Reservation System. The franchisee should carefully review Schedule F of the agreement, which specifies the current total Reservation Fees, to understand the costs associated with this service.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.