Where in the FDD can I find information about the definition of 'Gross Revenue' for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
- 7.10 Definition of "Gross Revenue.".
The term "Gross Revenue" will, for purposes of this Agreement, mean 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 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the definition of "Gross Revenue" is found in Paragraph 7.10 of Item 23. This section defines what constitutes "Gross Revenue" for the purposes of the Rental System Agreement.
Specifically, Gross Revenue includes all sums payable under closed rental agreements, vehicle lease agreements, sublicense agreements, or otherwise in the operation of the Rental Business. This encompasses time, mileage, damage or loss waiver, insurance products, service fees, surcharges, and any other charges for ancillary goods or services provided 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.
The definition also explicitly excludes certain items from Gross Revenue. These exclusions are any 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. It also excludes 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, revenue derived from the sale of fuel furnished at the time of rental, and customer facility fees (CFC) collected from customers and paid by the Licensee to the applicable governmental authority. Understanding this definition is crucial for calculating System Fees and other payments due to Budget.