For a Budget franchise, when are Reservation System Fees due?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ion. A Site Survey is required and will determine the system needs of the location. |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Current Reservation | |||
| System Fees(3) (Travel | |||
| Agency Commission): | |||
| Reservation Fee(4) a. Through a Budget contact center, a GDS, the internet (including Budget.com), or a Direct Link | $2.75 – 5.18 per reservation | 45 days from the date of the Licensee Settlement Statement also referred to as Composite Statement | The fee is attributed to reservation operating expenses, including but not limited to the corporate overhead expenses, promotional expenses for budget.com, and customer complaint service expenses. |
| b. Automated Reservation Fee GDS fee 2.75 Priceline 3.50 Southwest 4.90 Sabre 5.17 Galileo & Worldspan 5.18 Amadeus | $2.75–$5.18 per reservation | 45 days from the date of the Licensee Settlement Statement also referred to as Composite Statement | This fee covers the transmission fee for reservations generated by airline or other automated reservation systems, and processed through the reservation system, for your Budget Franchise. The amount of the fee depends on which automated reservation system generated the reservation and is subject to change annually. |
| c. International Phone Reservation Fee | $11.50 per international reservation made by phone | 45 days from the date of the Licensee Settlement Statement also referred to as Composite Statem |
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Reservation System Fees are generally due 45 days from the date of the Licensee Settlement Statement, also referred to as the Composite Statement. These fees apply to reservations made through various channels, including Budget contact centers, Global Distribution Systems (GDS), the internet (including Budget.com), or a Direct Link. The specific amount of the fee varies depending on the reservation source.
Specifically, reservations made through a Budget contact center, a GDS, the internet (including Budget.com), or a Direct Link incur a fee ranging from $2.75 to $5.18 per reservation. Automated reservation fees through GDS systems also range from $2.75 to $5.18 per reservation, with the exact amount depending on the specific system used (e.g., Priceline, Southwest, Sabre, Galileo & Worldspan, Amadeus). International phone reservations incur a fee of $11.50 per reservation.
It is important to note that these fees are associated with the operating expenses of the reservation system, including overhead, promotional expenses for budget.com, and customer complaint service expenses. The fees for automated reservation systems cover the transmission costs for reservations generated by airlines or other automated systems. These fees are subject to change annually, so franchisees should stay informed about any adjustments.