Does the reservation processing costs for a Budget franchise include telephony hardware?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
TO RESERVATION FEES
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
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, reservation processing costs include telephony hardware. Specifically, the operating expenses associated with reservation fees cover various costs, including "Terminal depreciation, network, maintenance and other costs, telephony hardware".
This means that a portion of the reservation fees paid by Budget franchisees is allocated to cover the depreciation, maintenance, and other costs associated with the telephony hardware used in the reservation system. This is important for prospective franchisees to understand, as it clarifies what the reservation fees are used for and how they contribute to the overall operation of the Budget reservation system.
It is important to note that the specific amount allocated to telephony hardware is not detailed, but it is included within the broader category of reservation processing costs. Franchisees should consider this when evaluating the overall cost structure and potential profitability of a Budget franchise.