When are Reservation System Fees due for a Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ion. A Site Survey is required and will determine the system needs of the location. |
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Current Reservation | |||
| System Fees(3) (Travel | |||
| Agency Commission): | |||
| Reservation Fee(4) a. Through a Budget contact center, a GDS, the internet (including Budget.com), or a Direct Link | $2.75 – 5.18 per reservation | 45 days from the date of the Licensee Settlement Statement also referred to as Composite Statement | The fee is attributed to reservation operating expenses, including but not limited to the corporate overhead expenses, promotional expenses for budget.com, and customer complaint service expenses. |
| b. Automated Reservation Fee GDS fee 2.75 Priceline 3.50 Southwest 4.90 Sabre 5.17 Galileo & Worldspan 5.18 Amadeus | $2.75–$5.18 per reservation | 45 days from the date of the Licensee Settlement Statement also referred to as Composite Statement | This fee covers the transmission fee for reservations generated by airline or other automated reservation systems, and processed through the reservation system, for your Budget Franchise. The amount of the fee depends on which automated reservation system generated the reservation and is subject to change annually. |
| c. International Phone Reservation Fee | $11.50 per international reservation made by phone | 45 days from the date of the Licensee Settlement Statement also referred to as Composite Statem |
Source: Item 6 — OTHER FEES(1) (FDD pages 17–29)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Reservation System Fees are due 45 days from the date of the Licensee Settlement Statement, which is also referred to as the Composite Statement. These fees apply to reservations made through various channels such as Budget contact centers, GDS (Global Distribution Systems), the internet (including Budget.com), or a Direct Link.
The Reservation Fee itself varies depending on how the reservation was made. For reservations made through a Budget contact center, a GDS, the internet, or a Direct Link, the fee ranges from $2.75 to $5.18 per reservation. For international phone reservations, the fee is $11.50 per reservation. Additionally, there are specific fees for automated reservations through GDS systems like Priceline ($3.50), Southwest ($4.90), Sabre ($5.17), and Galileo & Worldspan and Amadeus ($5.18).
These fees cover various operating expenses of the Reservation System, including the acquisition, maintenance, and enhancement of facilities, equipment, and personnel. They also cover general overhead expenses for administering and processing reservations, administrative expenses for handling customer complaints, and expenses related to promoting budget.com and other reservation channels and partnerships. The fees apply to reservations made by general consumers, tour licensees, or corporate customers who connect directly with the Reservation System. Budget franchisees need to factor these costs and payment timelines into their financial planning.