What are Global Distribution System Fees (GDS) for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the Reservation Fees payable to Budget or one of its Related Entities, Licensee will pay to certain, but not all, third party travel agencies the then-current Global Distribution System Fees ("GDS") identified in the Summary Pages (Section 10(e)).
This fee is subject to change at the discretion of Budget.
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 will incur Global Distribution System Fees (GDS). These fees are paid to third-party travel agencies for reservations made through their systems. The exact amount of these GDS fees is identified in Section 10(e) of the Summary Pages, but is not specified in this excerpt.
These fees are in addition to the Reservation Fees payable to Budget or its related entities. The fees are subject to change. Failure to pay GDS fees may result in Budget suspending the franchisee's right to receive reservations.
To understand the specific costs associated with GDS fees, a prospective Budget franchisee should refer to Section 10(e) of the Summary Pages within the FDD. It would also be prudent to inquire with Budget about how frequently these fees are adjusted and what factors influence these changes.