Are Budget's affiliates permitted to offer direct financing to Budget franchisees?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Budget nor its affiliates offers direct or indirect financing to Budget Franchise owners. Budget does not guarantee your note, lease, vendor purchases, or any other obligation.
We are listed on the SBA Franchise Directory located at: https://www.sba.gov/document/support- -sba-franchise-directory. If you obtain financing through the SBA, you must sign the SBA Addendum to Franchise Agreement, attached as Exhibit H-1.
Source: Item 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, neither Budget nor its affiliates offer direct or indirect financing to Budget franchise owners. Budget also does not guarantee any financial obligations a franchisee may incur, such as notes, leases, or vendor purchases.
This means that prospective Budget franchisees will need to secure their own financing from third-party sources to cover the costs of starting and operating the franchise. This is a common practice in franchising, as franchisors often prefer not to take on the financial risk of directly lending to franchisees.
Budget does provide a listing on the SBA Franchise Directory. If a franchisee obtains financing through the SBA, they must sign the SBA Addendum to Franchise Agreement, which is attached as Exhibit H-1. This suggests that while Budget doesn't offer direct financing, it does cooperate with the SBA to facilitate franchisee access to funding.