Can a Budget franchisee deduct any amount from the Reservation System Fees?

According to Budget's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from making any deductions or setoffs from Reservation System Fees. The FDD states that these fees must be paid without any deductions.

This means a Budget franchisee must pay the full amount of the Reservation System Fees as invoiced, regardless of any disputes or perceived discrepancies. The Reservation System Fees cover various operating and administrative expenses related to the reservation system, including IT infrastructure, personnel, overhead, customer complaint processing, and promotion of Budget's online presence.

The fees are incurred on all reservations made through the system for the franchisee, even if the franchisee does not accept the reservation. This policy ensures that Budget receives consistent revenue to cover the costs of maintaining and improving the reservation system, but it places the risk of unaccepted reservations on the franchisee. Franchisees should carefully review the Rental System Agreement to fully understand how Reservation System Fees are calculated and under what circumstances they are applied.