For Budget operators, what happens to revenue from additional items added to the system and who receives it?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
the oldest balances first and may modify the Review Period or any of the Standards relating to the Composite Statement upon written notice to the Licensee.
- 7.9 Incomplete Records. If the books and records of Licensee are missing or incomplete, for purposes of calculating System Fees, the Gross Revenue of Licensee will equal the average of the Gross Revenue of two other Budget Rental Businesses that are most similar to the Rental Business, as determined by Budget in its sole discretion, based on the latest available car rental volume statistics, reservations systems statistics or by sales tax reports or other data.
- 7.10 Definition of "Gross Revenue.". The term "Gross Revenue" will, for purposes of this Agreement, mean any and all sums of every nature and character (whether in cash, credit or otherwise) payable (collected or uncollected) under closed rental agreements, vehicle lease agreements, sublicense agreements, or otherwise, in Licensee's operation of its Rental Business including time, mileage, damage or loss waiver, insurance products, service fees, surcharges and any other charges for any ancillary goods or services provided directly or indirectly in connection with Licensee's Rental Business, including baby seats, navigational devices, portable XM radios and/or DVD players, tire chains, locks, ropes, hitches, pads, boxes, portable lifts, and other products and services associated with loading, unloading, securing contents and packing trucks and cars and specifically excluding only the following: (a) any national, state/province or local sales or other similar taxes separately stated, collected from customers and paid by Licensee to the applicable airport authority; (b) any amounts received as insurance proceeds or otherwise for damage to vehicles or other property of Licensee, or for loss, conversion or abandonment of such vehicles; (c) revenue derived from the sale of fuel furnished at the time of rental; and (d) customer facility fees ("CFC"), collected from customers and paid by Licensee to the applicable governmental authority.
- 7.11 Method of Payment.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Gross Revenue for Budget includes sums payable under closed rental agreements, vehicle lease agreements, sublicense agreements, or otherwise, in the Licensee's operation. This includes time, mileage, damage or loss waiver, insurance products, service fees, surcharges, and any other charges for ancillary goods or services provided directly or indirectly in connection with the Licensee's Rental Business. These ancillary items include baby seats, navigational devices, portable XM radios and/or DVD players, tire chains, locks, ropes, hitches, pads, boxes, portable lifts, and other products and services associated with loading, unloading, securing contents, and packing trucks and cars.
However, Gross Revenue specifically excludes certain items. These exclusions are any national, state/province, or local sales or other similar taxes separately stated, collected from customers, and paid by the Licensee to the applicable airport authority. It also excludes any amounts received as insurance proceeds or otherwise for damage to vehicles or other property of the Licensee, or for loss, conversion, or abandonment of such vehicles. Revenue derived from the sale of fuel furnished at the time of rental and customer facility fees (CFC) collected from customers and paid by the Licensee to the applicable governmental authority are also excluded from Gross Revenue.
Budget has the right to require the Licensee to participate in an electronic funds transfer program. Under this program, all License Fees and any other payments due to Budget or any of the Related Entities under the Agreement or any other agreement between the parties are transferred electronically from the Licensee's bank account to the bank or other financial institution specified by Budget. However, Budget does not have the right to access the Licensee's bank account directly. Licensees pay System Fees to Budget on or before the 15th day of each month for the preceding month and Reservation Fees on or before the 20th day of each month for the preceding month.