Is a Budget franchisee required to reimburse Budget for amounts paid to travel agents for referral business?

According to Budget's 2025 Franchise Disclosure Document, Budget franchisees are required to reimburse Budget for payments made to travel agents or other groups for referral business. Budget has a centralized system for paying these travel agents and other groups. This reimbursement requirement also extends to abiding by the terms of credit and other programs, such as frequent flyer, frequent renter, or other travel incentive programs that Budget designates.

This means that as a Budget franchisee, you will be responsible for covering the costs associated with referral business generated through travel agents and other groups that Budget utilizes. These costs will be passed on to you, and you must adhere to the terms of any related programs. This could impact your profitability, as you will need to factor in these reimbursement expenses when assessing your financial performance.

Furthermore, Budget has the right, but not the duty, to pay travel agency commissions if the franchisee fails to do so and then bill the franchisee for those commissions. If the franchisee does not pay travel agent commissions when due, Budget can cease all reservations transmitted to the franchisee until all amounts due are paid in full. This highlights the importance of managing these payments promptly to avoid disruptions to the reservation system and potential business losses.