What is the third-party automated reservation fee for Budget when using Priceline?

According to Budget's 2025 Franchise Disclosure Document, the third-party automated reservation fee is determined in accordance with Schedule 3. This fee covers the reservation transmission fee for all reservations generated by third parties booked through their proprietary systems, also known as a Global Display System or "GDS," and processed through the Reservation System on the Licensee's behalf. The current rates for this fee are indicated in Schedule 2 to Schedule F. These rates are subject to change as and to the extent that the GDS reservation fee rates that ABCR is required to pay changes.

For a prospective Budget franchisee, this means that the cost of reservations made through third-party systems like Priceline is not a fixed amount. Instead, it fluctuates based on the fees Budget's parent company, ABCR, must pay to the GDS. This fee is in addition to the general reservation fee of $4.10 per reservation. Franchisees need to be aware that these third-party reservation fees can vary and impact their overall operating costs.

To fully understand the financial implications, a potential franchisee should carefully review Schedule 2 to Schedule F of the Franchise Disclosure Document and ask Budget for detailed information on how these fees are calculated and how often they have changed in the past. Understanding these costs is crucial for accurate financial forecasting and managing profitability. Since the fee is subject to change, it's important to factor in potential fluctuations when budgeting.