Can Budget modify the Reservation System?
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 has the authority to modify the Reservation System at its discretion. Franchisees are required to participate in the Reservation System, adhere to the terms of any Reservation Agreement, and accept reservations received through the system. This system may be modified or instituted by Budget.
Budget also reserves the right to require franchisees to connect to other designated reservation systems and use rental software from specific providers in conjunction with the Reservation System. Franchisees must purchase, install, and implement all necessary computer hardware and software systems according to Budget's standards, ensuring compatibility with Budget's computer systems. These systems, including any modifications or additions, may require franchisees to purchase, lease, or license equipment and pay licensing, maintenance, or access fees to Budget, its affiliates, or others.
These stipulations mean that franchisees must stay updated with any changes Budget makes to the Reservation System and promptly implement them at their own expense. Failure to comply with these requirements could lead to operational disruptions or additional costs for the franchisee. Franchisees should be prepared to adapt to new technologies and systems as directed by Budget to maintain network consistency and efficiency.