Is a Budget licensee required to participate in the reservation system designated by Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee will participate in the Reservation System Budget designates and in no other reservation system and will pay to Budget or one of its Related Entities the then-current reservation fees established by Budget or one of its Related Entities for each reservation transmitted to Licensee whether or not the reservation results in a rental ("Reservation Fees").
Licensee will accept and service all reservations at the time of day requested by the customer.
The current Reservation Fee is identified in the Summary Pages (Section 10(d)).
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.
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)).
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 the reservation system that Budget designates. The licensee must participate in the designated Reservation System and no other reservation system. The licensee will pay reservation fees established by Budget or its related entities for each reservation transmitted to the licensee, regardless of whether the reservation results in a rental.
Budget has the right to modify the Reservation System at its discretion. The licensee must also execute and comply with the terms of any rental system agreement with Budget or a related entity. Licensees are obligated to accept and service all reservations at the time of day requested by the customer.
If a Budget licensee fails to pay reservation fees when due, Budget may remove, suspend, or block the licensee's right to receive reservations. In addition to reservation fees, licensees may also be required to pay Global Distribution System Fees to certain third-party travel agencies.