How often does Budget prepare a profit and loss statement for the reservation system and reconcile the applicable fees and expenses?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
- c) For as long as Avis Budget Car Rental operates the Budget Reservation System domestically on a nonprofit basis, prepare a profit and loss statement for the reservation system and reconcile the applicable fees and expenses, and, within ninety (90) days adjust the fees for the then current year (including any retroactive adjustment to the beginning of the then current calendar year) (Rental System Agreement, paragraph II.3.) (see Item 6); and
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–61)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Avis Budget Car Rental (ABCR) will prepare a profit and loss statement for the Budget Reservation System and reconcile the applicable fees and expenses. This is done as long as ABCR operates the Budget Reservation System domestically on a nonprofit basis.
Budget will adjust the fees for the current year within ninety (90) days. This adjustment may include retroactive changes back to the beginning of the current calendar year. This process is detailed in the Rental System Agreement, specifically paragraph II.3, and is further referenced in Item 6 of the FDD.
This arrangement provides transparency to Budget franchisees regarding the operation of the reservation system and how fees are managed. Franchisees can expect regular reconciliation and potential fee adjustments, ensuring the system operates fairly and efficiently. However, it's important to note that this is contingent on ABCR operating the reservation system on a nonprofit basis.