Under the Budget Override/Bonus Program, is the bonus based on a property-by-property calculation?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
The primary difference between the base commission Schedule and the Override/Bonus Program is that any override/bonus is based on achieving the preset targets for business directed to Budget U.S. properties as a whole and is not based on any property by property calculation.
When an override/bonus is due, all properties receiving the business are charged an override/bonus at the same preset payout rate. It is important to note that properties are only charged an override/bonus on business which has been generated by the eligible travel sources for those properties.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Override/Bonus Program is not calculated on a property-by-property basis. Instead, the bonus is based on achieving preset targets for business directed to Budget U.S. properties as a whole.
When an override/bonus is due, all Budget properties that receive business from eligible travel sources are charged the override/bonus at the same preset payout rate. However, properties are only charged an override/bonus on business generated by the eligible travel sources specifically for those properties.
This means that a Budget franchisee's contribution to the overall U.S. business performance affects the bonus payout, but the calculation isn't isolated to individual property performance. Franchisees benefit from the overall success of the Budget system in attracting business through travel sources, but they are only charged for the bonus related to the business those sources bring to their specific location.