When are Travel Agency Commissions due for a Budget franchise for non-preferred accounts?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type | Date Due |
|---|---|
| Initial License Purchase Fee (See Paragraph 7.1): | Upon execution of Agreement |
| License Fees (See Paragraph 7.2): | 10th of each month |
| 7.5% of Gross Revenues | |
| Monthly Marketing Fees (See Paragraph 7.3): | 15th of each month |
| Reservation Fees (See Paragraph 7.4): | |
| Fees assessed pursuant to Rental System Agreement(attached | |
| hereto as Exhibit E) | |
| Global Distribution System Fees (See Paragraph 7.4): | |
| Fees assessed pursuant to Rental System Agreement (attached | |
| hereto as Exhibit E) | |
| Travel Agency Commissions (See Paragraph 7.5): Fees assessed pursuant to Centralized Commission Services Program requirements. | Within 30 days of rental for non-preferred accounts 12th of each month for preferred accounts |
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, travel agency commissions for non-preferred accounts are due within 30 days of the rental. For preferred accounts, these commissions are due on the 12th of each month.
Budget requires its franchisees to participate in Budget-approved programs for the centralized payment of travel agency commissions and to comply with all related rules and regulations. Franchisees must ensure that all commissions are paid promptly according to the system's policy. Failure to pay these commissions on time can result in Budget paying the commissions directly and billing the franchisee for the amount.
Furthermore, if a Budget franchisee fails to pay travel agent commissions when they are due, Budget reserves the right to cease all reservations transmitted to the franchisee until all outstanding amounts are paid in full. This could significantly impact the franchisee's business operations, highlighting the importance of adhering to the commission payment schedule.