Is a Budget franchisee required to participate in Budget's Reservation System?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
designate. Licensee will display any promotional programs, including special suggested rate promotions as a result of agreements Budget enters into with National Accounts. Licensee must provide service to the National Accounts in accordance with Budget's requirements. If Licensee fails to do so, in addition to other remedies available to Budget under this Agreement, Budget will have the right, without notice to Licensee, to provide (or license a third party, including a Related Entity, to provide) service to one or more National Accounts in the Territory.
- 6.2 Reservation and Rental Systems. 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; (e) if required by Budget in its sole discretion, execute and comply with all of the terms and conditions of the Rental System Agreement (the "Rental System Agreement") with a Related Entity designated by Budget; (f) reserve for Budget the right to require Licensee to connect to other designated reservation systems and process through such system all rental transactions entered into with customers in the Rental Business;
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are required to participate in Budget's Reservation System. Specifically, the franchisee must participate in the reservation system that Budget has in effect, or any system that Budget may institute or modify in its sole discretion. The franchisee must also comply with the terms and conditions of any rental system agreement with Budget or a related entity.
Budget franchisees must accept and honor reservations received through the Reservation System or from other network operators, if required. They are also obligated to transmit reservations to the appropriate network operator, if required, without charging the customer or the receiving operator any fees beyond what is outlined in the standards or the Reservation Agreement. Franchisees must adhere to the rental rates they input into the Reservation System or any other reservation system.
Furthermore, Budget retains the right to mandate that franchisees connect to other designated reservation systems and process all rental transactions through those systems. Budget also reserves the right to require franchisees to use rental software from specific designated providers in conjunction with the Reservation System or any other reservation system that Budget designates. Franchisees will pay reservation fees for each reservation transmitted to them, regardless of whether the reservation results in an actual rental.