What were Budget's advertising costs in 2024, according to the financial statements?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
arter of 2025. There were no similar charges during the years ended December 31, 2023 or 2022. To the extent there are further changes in market conditions or the performance of our long-lived assets, there is a possibility that we could incur additional related costs in the future.
Advertising Expenses
Advertising and digital marketing costs are generally expensed in the period incurred and are recorded within selling, genera
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company's advertising costs in 2024 totaled $77 million. In addition to advertising costs, Budget spent $90 million on digital marketing during the same year. These expenses are recorded within selling, general, and administrative expenses in Budget's Consolidated Statements of Operations.
It is important to note that these figures reflect the advertising expenses incurred by Avis Budget Group, Inc., the parent company, and not necessarily the advertising costs specifically for the Budget brand or those borne by individual franchisees. Franchisees should inquire about any required contributions to brand advertising funds and how those funds are used.
Understanding the advertising expenses of the parent company can give potential franchisees insight into the overall marketing investment in the Budget brand. However, it is crucial for prospective franchisees to understand their own advertising obligations and how they will contribute to and benefit from marketing efforts at the local and national levels.