What general and administrative expenses does Budget include in its receipts calculation?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget also reserves the right to prepare (or cause one of its Related Entities to prepare) and make available to Licensee a monthly composite statement ("Composite Statement") for the Territory which will contain specific charges and credits relating to various programs including, the Programs referenced in Article VI.
If Budget so chooses to use a Composite Statement, Licensee will pay to Budget (or its designated affiliate) all amounts contained within the Composite Statement, including any late fees, administrative fees
and/or any contested fees that have not been resolved as further described below, within forty-five (45) days of the Composite Statement Date. Licensee will have forty-five (45) days from the Composite Statement Date, to contest and adequately address any charges or credits on the Composite Statement in accordance with the Standards (the "Review Period"). Licensee agrees that any changes or credits not properly contested or addressed within the Review Period will be considered final, due and payable to Budget (or its designated affiliate) pursuant to this Paragraph 7.8 and the Rental System Agreement. Budget (or its designated affiliate), at its sole discretion, will first apply any payments that it receives to the oldest balances first and may modify the Review Period or any of the Standards relating to the Composite Statement upon written notice to the Licensee.
- 7.9 Incomplete Records.
If the books and records of Licensee are missing or incomplete, for purposes of calculating System Fees, the Gross Revenue of Licensee will equal the average of the Gross Revenue of two other Budget Rental Businesses that are most similar to the Rental Business, as determined by Budget in its sole discretion, based on the latest available car rental volume statistics, reservations systems statistics or by sales tax reports or other data.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Budget utilizes a monthly composite statement that contains specific charges and credits relating to various programs. Licensees are required to pay Budget (or its designated affiliate) all amounts within this composite statement, including any late fees and administrative fees. Licensees have 45 days from the Composite Statement Date to contest any charges, and any items not properly contested within this review period are considered final and payable to Budget.
Budget has the discretion to apply payments to the oldest balances first and can modify the review period or standards related to the composite statement with written notice to the licensee. This means that Budget franchisees need to carefully review these composite statements to ensure accuracy and address any discrepancies promptly to avoid additional fees.
If a Budget licensee's records are incomplete, Budget will calculate Gross Revenue based on the average Gross Revenue of two other Budget Rental Businesses that are most similar to the Rental Business. Budget determines similarity based on car rental volume statistics, reservation systems statistics, sales tax reports, or other data. This highlights the importance of maintaining accurate and complete records to ensure fair calculation of System Fees.