Is a Budget Licensee required to accept reservations from other Network operators?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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; and (g) reserve for Budget the right to require Licensee to use rental software from certain designated software providers in conjunction with the Reservation System or any other reservation system that Budget designates.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget licensees are required to accept reservations from other network operators if required. As part of participating in Budget's reservation system, licensees must accept and honor reservations received through the system or from other network operators. They must also transmit reservations requested by customers to the appropriate network operator, without charging the customer or the receiving operator any fees beyond what is required by the Standards or the Reservation Agreement.
This requirement ensures a consistent and reliable service for customers across the Budget network. By honoring reservations from other operators, licensees contribute to the overall customer experience and the brand's reputation. This also means that a Budget licensee may be obligated to fulfill reservations even if their own fleet is limited, potentially impacting their operational capacity and revenue.
Budget also has the right to modify the reservation system and agreements, meaning these requirements could change. Licensees must stay informed about any updates to the Reservation System and Reservation Agreement to ensure compliance. This also means that Budget can require licensees to connect to other designated reservation systems and use rental software from certain designated software providers.