What was the amortization expense relating to license agreements for Budget as of December 31, 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
ized over a period ranging from 3 to 10 years with a weighted average life of 9 years.
During 2024, we recorded an impairment related to our unamortized Zipcar trademark of $28 million. See Note 2 – Summary of Significant Accounting Policies.
Amortization expense relating to all intangible assets was as follows:
| Amortizati
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the amortization expense relating to license agreements for the year ended December 31, 2022, was $10. This figure represents the expense recognized during that period related to the use of licensed assets.
Amortization is the process of spreading the cost of an intangible asset over its useful life. In the context of franchise agreements, this typically refers to the expense recognized each year for the right to operate under the Budget brand and utilize its trademarks, systems, and other intellectual property. The $10 expense indicates the portion of the initial cost of these license agreements that Budget recognized as an expense in 2022.
For a prospective Budget franchisee, understanding amortization expenses is crucial for assessing the overall financial health and profitability of the franchise system. While this specific figure reflects Budget's expense, franchisees may also incur their own amortization expenses related to assets they acquire for their business. Reviewing these figures in the FDD can provide insights into how Budget manages its intangible assets and the potential impact on its financial statements.