Does Budget pay travel agencies commissions for customer referrals through the Budget Reservation System, and if so, how are these payments handled?

According to Budget's 2025 Franchise Disclosure Document, Budget does pay commissions to travel agencies or similar booking sources for customer referrals made through the Budget Reservation System. These payments are managed through a central payment method. This is facilitated under the terms of the Rental System Agreement.

For a prospective Budget franchisee, this means that a portion of the revenue generated through the Budget Reservation System is allocated to cover these commissions. The franchisee does not directly handle these commission payments to travel agencies; instead, Budget manages this process centrally. This arrangement simplifies the franchisee's operational responsibilities by removing the need to negotiate and administer commission payments individually.

The Rental System Agreement governs the specifics of this arrangement, and franchisees are obligated to comply with its terms, including the payment of associated fees. The FDD references Schedule F3 of the Rental System Agreement, which likely contains further details on the commission structure and payment procedures. Franchisees should review this schedule carefully to understand the financial implications and operational aspects of this system.