What is the Reservation Fee charged by Budget, and what expenses does this fee cover?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The Reservation Fees Licensee agrees to pay to ABCR consist of the following:
- a.
Reservation Fee.
This fee is attributable to reservation operating expenses, which include reservations incoming from phone/GDS equipment, phone calls or internet/direct link reservations, including from budget.com.
This fee also covers the operating expenses of the Reservation System, including expenses for the acquisition, maintenance and enhancement of facilities, equipment, personnel, marketing, customer relations and corporate overhead for the Reservation System.
A list of the current total Reservation Fees are specified in Schedule F, which is attached hereto and incorporated herein by
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- Reservation Fee. This fee is $4.10 per reservation and includes reservations from phone/GDS equipment, phone calls or internet/direct link, including budget.com). This fee includes the corporate overhead expenses, promotional expenses for budget.com and customer complaint service expenses.
OPERATING EXPENSES
Reservation processing costs:
Computer processing charges and reports In Watts, automated reservation processing charges Out Watts, telex and telephone charges Terminal depreciation, network, maintenance and other costs, telephony hardware Transborder reservation adjustments
Advertising, Marketing and Promotion:
Frequent Renter Program Yellow pages advertising Worldwide directory productions Third party reservation promotions
Occupancy:
Rent –all Contact Centers Utilities and repairs Equipment rental and depreciation
Personnel:
Recruiting and training Salaries and wages Taxes and fringe benefits
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, franchisees are required to pay a Reservation Fee, which is detailed in Schedule F. This fee is currently $4.10 per reservation and applies to reservations made through various channels, including phone, GDS equipment, internet, and direct links such as budget.com. The Reservation Fee is subject to change at Budget's discretion.
The Reservation Fee covers several operating expenses related to the reservation system. These expenses include the costs associated with reservation processing, such as computer processing charges, automated reservation processing charges, telephone charges, terminal depreciation, network maintenance, and transborder reservation adjustments. Additionally, the fee covers advertising, marketing, and promotion expenses, including frequent renter programs, yellow pages advertising, worldwide directory productions, and third-party reservation promotions.
Furthermore, the Reservation Fee contributes to occupancy costs for contact centers, including rent, utilities, repairs, and equipment rental and depreciation. It also covers personnel expenses related to recruiting, training, salaries, wages, taxes, and fringe benefits for staff involved in the reservation system. General and administrative expenses, corporate overhead expenses, promotional expenses for budget.com, and customer complaint service expenses are also covered by this fee. Budget uses the Reservation Fees to operate the Reservation System in accordance with the terms and conditions of the franchise agreement, including providing the necessary facilities, equipment, and personnel for soliciting, receiving, and transmitting reservations on behalf of the franchisee.