What are 'System Fees' for a Budget licensee, according to the FDD?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ociated with the Rental
Business, in the amount set forth and in the manner identified in the Summary Pages (Section 10(b)). The definition of Gross Revenue for the Rental Business is defined in Paragraph 7.10. All fees due hereunder will be documented through the Monthly System Fee Report and invoice, which Licensee will submit to Budget along with all fees due hereunder. Such fees will be subject to adjustment in accordance with the results of any audit by Budget of the records of Licensee.
- 7.3 Monthly Marketing Fees. Licensee will pay to Budget a Monthly Marketing Fee identified in the Summary Pages (Section 10(c)). License Fees and Monthly Marketing Fees are collectively referred to as "System Fees."
- 7.4 Reservation Fees.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, System Fees are comprised of License Fees and Monthly Marketing Fees. License Fees are paid to Budget by the tenth of each month for operating the Rental Business, and other fees associated with the Rental Business, in amounts specified in the Summary Pages (Section 10(b)). Monthly Marketing Fees are paid to Budget as well, with the amount identified in the Summary Pages (Section 10(c)).
License Fees are for the operation of the rental business. The fees are documented through a Monthly System Fee Report and invoice, which the licensee submits to Budget along with all fees due. These fees are subject to adjustment based on audits conducted by Budget of the licensee's records. The definition of Gross Revenue for the Rental Business, which likely impacts the License Fees, is defined in Paragraph 7.10 of the FDD.
Prospective Budget franchisees should carefully review Summary Pages Sections 10(b) and 10(c) to understand the specific amounts and calculation methods for both License Fees and Monthly Marketing Fees. Understanding how these fees are calculated and when they are due is crucial for managing the financial aspects of the franchise.