Is a Budget franchisee required to accept and service all reservations?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee will accept and service all reservations at the time of day requested by the customer.
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 agrees to: (a) participate in a reservation system (the "Reservation System"), which is now in effect, which may be modified or which may hereafter be instituted by Budget, in its sole discretion; (b) execute and comply with all of the terms and conditions of any rental system agreement with Budget or a Related Entity that Budget may designate in its sole discretion, or any amended or substitute agreement governing participation in the Reservation System (the "Reservation Agreement"); (c) accept and honor all reservations received through the Reservation System or otherwise from other Network operators, if required, and to transmit all reservations which it is requested to place by any customer to the appropriate Network operator, if required, without charge to the customer, and without fee to the receiving operator, other than as required by the Standards or the Reservation Agreement; (d) adhere to the rental rates that it places in, or has another place in, the Reservation System or any other reservation system;
If Licensee fails to pay Reservation Fees when due, Budget may remove, suspend or block Licensee's right to receive reservations.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees must accept and service all reservations at the time of day requested by the customer. This requirement is tied to participation in Budget's designated Reservation System. Franchisees must also honor the rental rates they place in the Reservation System or any other reservation system.
Budget franchisees are required to participate in the reservation system that Budget designates and no other. They must pay the then-current reservation fees established by Budget or its related entities for each reservation transmitted to the franchisee, regardless of whether the reservation results in an actual rental.
Budget also has the right to require franchisees to connect to other designated reservation systems and process all rental transactions through those systems. Additionally, Budget can mandate the use of rental software from specific providers in conjunction with the Reservation System or any other reservation system it designates. These stipulations ensure uniformity and control over the reservation process across the Budget network.
Failure to comply with these reservation requirements or to pay the associated fees can result in Budget removing, suspending, or blocking the franchisee's right to receive reservations. This underscores the importance of adhering to Budget's reservation policies and maintaining good financial standing with the franchisor.