What is the allowance for doubtful accounts expense (benefit) for Budget in 2024, expressed in millions of dollars?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ed average interest rate of 8.01%. These notes were issued under previously outstanding series of debt.
In February 2025, we borrowed $500 million under a floating rate term loan due December 2025, which is part of our senior revolving credit facilities.
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Schedule II – Valuation and Qualifying Accounts
| (in millions) Description | Balance of | at Beginning Period | Expe | nse (Benefit) | Other Adjustments (a) | _ | Deductions | Balance at End of Period | |------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the allowance for doubtful accounts expense (benefit) for the year ended December 31, 2024, was a benefit of $(3) million. This figure represents an adjustment to account for potential uncollectible receivables.
In simpler terms, Budget reduced its expense by $3 million because it expects to collect more of its outstanding debts. This adjustment reflects Budget's assessment of the credit risk associated with its accounts receivable. A negative expense, or benefit, suggests that Budget has become more confident in its ability to recover outstanding balances from its customers or franchisees.
For a prospective Budget franchisee, this information provides insight into how the company manages its financial risks related to accounts receivable. While this specific figure may not directly impact a franchisee's day-to-day operations, it contributes to the overall financial health and stability of the Budget franchise system. Franchisees may want to inquire about the factors that influenced this adjustment and how Budget supports franchisees in managing their own accounts receivable.