Are Reservation System Fees for a Budget franchise imposed under the Budget License Agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
lected from customers and paid by Licensee to the applicable governmental authority."
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- The Reservation System Fees are imposed under the Rental System Agreement, which you must sign along with the Budget License Agreement. These fees are due for all reservations which are made for your Budget Franchise by customers, airlines, tour agencies, travel agents, Internet or e-commerce users, or otherwise through the reservation system during the preceding month. These fees are incurred on all reservations, including reservations that ABCR attempts to send to you but you fail to accept for any reason. You must pay these fees without any setoff or deduction of any kind. Budget collects all fees that the Rental System Agreement (and its exhibits) imposes.
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- The Reservation Fee covers: (i) the operating expenses of the Reservation System, including expenses for the acquisition, maintenance, and enhancement of facilities, equipment, and personnel for the Reservation System; (ii) general overhead expenses in administering and processing reservations, which include the oversight of the operation, accounts payable processing, tax return preparation, internal audits, and partner and association expenses; (iii) administrative expenses in processing customer complaints (does not include amounts that Licensee must pay ABCR for resolving customer complaints); (iv) expenses related to the promotion of budget.com and other reservation channels and partnerships;
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 not imposed under the Budget License Agreement. Instead, these fees are imposed under the Rental System Agreement, which franchisees must sign in addition to the Budget License Agreement.
The fees are applicable to all reservations made for a Budget franchise through various channels, including customers, airlines, tour agencies, travel agents, the internet, and e-commerce platforms. These fees apply regardless of whether the franchisee accepts the reservation sent by ABCR.
The Reservation Fee covers the operating expenses of the Reservation System, including the acquisition, maintenance, and enhancement of facilities, equipment, and personnel. It also covers general overhead expenses for administering and processing reservations, administrative expenses for processing customer complaints, expenses related to promoting budget.com and other reservation channels and partnerships, and reservations made by general consumers, tour licensees, or corporate customers who connect directly with the Reservation System. Budget collects all fees that the Rental System Agreement imposes.