What happens if a Budget franchisee fails to pay Reservation Fees when due?

According to Budget's 2025 Franchise Disclosure Document, if a franchisee fails to pay Reservation Fees when due, Budget may remove, suspend, or block the franchisee's right to receive reservations.

Reservation Fees are paid by the franchisee to Budget and are typically due on or before the 20th day of each month for the preceding month. These fees cover reservation operating expenses, including those related to phone, GDS equipment, phone calls, internet, and direct link reservations, including those from budget.com. The fees also cover the operating expenses of the Reservation System, including the acquisition, maintenance, and enhancement of facilities, equipment, personnel, marketing, customer relations, and corporate overhead.

In addition to potentially losing the right to receive reservations, the franchisee will also pay interest on any monies related to the Rental Business not received by Budget when due. Late fees will be assessed against all amounts past due including past due late fees. Budget has the sole discretion to apply any payments made by the franchisee to any past due indebtedness of the franchisee.