For Budget licensees, what is the processing fee assessed per reservation due to failure to respond to the Commission Exception Report?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
at all times that any travel source reservations received directly from travel sources are reported by Licensee through BCCS in accordance with the same procedures as published for those travel source reservations transmitted to Licensee's properties through the Reservation System.
D. AUTOMATIC PAYMENT OF COMMISSIONS
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- Licensee will be notified of each travel source reservation for which it has not provided the required information. If after the specified time from such notification, Licensee does not submit information regarding time, mileage, commission percentage, and whether the reservation was canceled, was a duplicate, or the renter was a no-show, or such other information as may then be required for submissions, ABCR will pay the travel source commission based on estimated rental amounts on the reservation. Licensee will make diligent efforts to resolve all travel source commission complaints and resolve all other travel source commission issues so that commissions can be paid based on actual submissions prior to the trigger of the automatic commission payments in accordance with the I
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget licensees are charged a processing fee for each reservation if they fail to respond to the Commission Exception Report. The Commission Exception Report documents unreported reservations from the previous month and is sent to the licensee.
Specifically, Budget requires licensees to report the status of travel source reservations to the Commission Services Department within 30 days of the rental completion or a no-show. If the licensee does not respond within 30 days to each reservation listed on the Commission Exception Report, the reservation is classified as completed, and the Commission Services Department estimates the time and mileage to calculate the commission payment to the referring travel agency.
To cover administrative fees for this process, Budget assesses a $5.00 processing fee per reservation. However, Budget licensees can avoid this fee by promptly reporting the status of commissionable reservations or responding to the Commission Exception Report as required.