What is the minimum monthly Club Billing charge that a Budget licensee will pay to ABCR?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
veness of Licensee's Rental System Agreement.
- (b) This Addendum may be terminated as follows:
- (i) Either party may terminate this Addendum with or without cause by providing the other party with ninety (90) days prior written notice.
EXHIBIT I BUDGET FDD 571139240.7 I-35
- (ii) ABCR may terminate the Warranty Claim Processing Service upon ninety (90) days' prior written notice to Licensee.
- (iii) In the event of the insolvency or dissolution of Licensee, the making by Licensee of an assignment for the benefit of, or entering into any composition or arrangement with, creditors, or the appointment of a receiver or trustee for liquidation of the business of Licensee, or if bankruptcy, reorganization, insolvency or arrangement proceedings or p
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a licensee will pay ABCR a monthly charge for Club Billing transactions. As of the effective date of the Rental System Agreement, this charge consists of $150 plus $0.22 times the total value of the Club Billing transactions. However, there is a minimum monthly Club Billing charge of $55.00.
In practical terms, this means that even if the calculation of $150 plus $0.22 times the total value of Club Billing transactions is less than $55.00, the Budget licensee will still be required to pay a minimum of $55.00 to ABCR for the Club Billing service. This minimum charge ensures that ABCR receives a base level of compensation for providing the service, regardless of the transaction volume of the licensee.
It's important for prospective Budget franchisees to consider this minimum charge when evaluating the potential costs and profitability of their franchise. If a location anticipates low Club Billing transaction volumes, the $55.00 minimum could represent a significant percentage of their revenue from this service. Franchisees should also be aware that ABCR reserves the right to adjust these charges periodically with notice to the licensee, so the actual minimum charge could change over time.