factual

Is a Budget Licensee required to participate in a reservation system?

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

designate. Licensee will display any promotional programs, including special suggested rate promotions as a result of agreements Budget enters into with National Accounts. Licensee must provide service to the National Accounts in accordance with Budget's requirements. If Licensee fails to do so, in addition to other remedies available to Budget under this Agreement, Budget will have the right, without notice to Licensee, to provide (or license a third party, including a Related Entity, to provide) service to one or more National Accounts in the Territory.

  • 6.2 Reservation and Rental Systems. 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.

  • 6.3 Customer Complaint Programs. Licensee shall comply with all of the terms and conditions of all then-current customer complaint programs as required by the Standards; the cost to administer the current program is included as part of the Reservation Fee. Further, Budget shall handle customer complaints subject to the Budget Licensee Customer Adjustment Procedure (the "Customer Adjustment Procedure"). Under the Customer Adjustment Procedure, Budget shall have the right to resolve disputes at Budget's discretion between Licensee and its customers and issue payments to customers on the Licensee's behalf. Budget shall have the right to charge back Licensee up to the amounts of the total rental charges incurred by the customer for the rental transaction. The resolution amount is billed to the Licensee's Composite Statement (as described in Paragraph 7.9).

  • 6.4 Payment Programs. Licensee agrees to accept such credit cards, vouchers, tour vouchers and other forms of payment from its customers, and otherwise to participate in and comply with all of the terms and conditions of payment programs, as required by the Standards.

  • 6.5 Inter-City Program.

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 participate in a reservation system that Budget designates. The licensee must also comply with the terms and conditions of any rental system agreement with Budget or a related entity. This includes accepting and honoring reservations received through the reservation system or from other network operators, if required, and transmitting reservations to the appropriate network operator, if required, without charging the customer or the receiving operator any fees beyond what is required by the standards or the reservation agreement.

Budget licensees must adhere to the rental rates they place in the reservation system or any other reservation system. Budget reserves the right to require licensees to connect to other designated reservation systems and process all rental transactions through those systems. Additionally, Budget can require licensees to use rental software from specific designated providers in conjunction with the reservation system or any other system Budget designates.

Licensees are obligated to pay reservation fees for each reservation transmitted to them, regardless of whether the reservation results in an actual rental. If a licensee fails to pay these fees, Budget may remove, suspend, or block the licensee's right to receive reservations. Furthermore, as a prerequisite to receiving reservation services, licensees must process all rental transactions resulting from reservations generated through the reservation system in accordance with the terms of the agreement, Budget's national account programs, and the terms of the reservations themselves.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.