Where can I find the current Reservation Fee for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee will participate in the Reservation System Budget designates and in no other reservation system and will pay to Budget or one of its Related Entities the then-current reservation fees established by Budget or one of its Related Entities for each reservation transmitted to Licensee whether or not the reservation results in a rental ("Reservation Fees").
Licensee will accept and service all reservations at the time of day requested by the customer.
The current Reservation Fee is identified in the Summary Pages (Section 10(d)).
This fee is subject to change at the discretion of Budget.
...
A list of the current total Reservation Fees are specified in Schedule F, which is attached hereto and incorporated herein by
reference.
...
RESERVATION FEES
List of subschedules:
Schedule 1: Operating Expenses
Schedule 2: Third Party Automated Reservation Fees
Schedule 3: Budget Centralized Commission Services Program
Schedule 4: Communication Symbols
The Reservation Fees listed below, as amended from time to time pursuant to the terms and conditions of the Reservation System Agreement, are cumulative for all reservations made for delivery to United States locations.
-
- Reservation Fee. This fee is $4.10 per reservation and includes reservations from phone/GDS equipment, phone calls or internet/direct link, including budget.com). This fee includes the corporate overhead expenses, promotional expenses for budget.com and customer complaint service expenses.
-
- International Phone Reservation Fee. This fee is $15.10 per reservation made using an international phone source
-
- Automated Reservation Fee. The Automated Reservation Fee will be determined in accordance with Schedule 3, as amended from time to time.
-
- ABCR Centralized Commission Services Program Fee. The Budget Centralized Commission Services Program fee will be determined in accordance with the BCCS terms and conditions as stated in Schedule 4, as amended from time to time.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the current Reservation Fee is identified in the Summary Pages, specifically Section 10(d). Additionally, a list of the current total Reservation Fees are specified in Schedule F, which is attached to the agreement. This fee is subject to change at Budget's discretion.
Schedule F outlines various reservation fees. The Reservation Fee is $4.10 per reservation, covering reservations from phone/GDS equipment, phone calls, or internet/direct links, including budget.com. This fee encompasses corporate overhead expenses, promotional expenses for budget.com, and customer complaint service expenses. The International Phone Reservation Fee is $15.10 per reservation made using an international phone source. There are also fees for Automated Reservations and the ABCR (Avis Budget Car Rental) Centralized Commission Services Program, which are determined according to their respective schedules.
These fees are cumulative for all reservations made for delivery to United States locations. The fees cover various operating expenses such as computer processing charges, advertising, marketing, rent for contact centers, personnel costs, and general and administrative expenses. Understanding these fees and how they are calculated is crucial for a prospective franchisee to accurately forecast expenses and profitability.
Budget licensees should pay close attention to Schedule F and any amendments to it, as these fees can impact their overall costs. Furthermore, it is important to understand the terms and conditions of the Reservation System Agreement, as these fees are subject to those terms. Franchisees should also be aware that Budget can modify these fees, so staying informed about any changes is essential for financial planning.