What was the amount of debt borrowings for Budget's Americas operations as of December 31, 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
e in compliance with the financial covenants governing our indebtedness.
14. Debt Under Vehicle Programs and Borrowing Arrangements
Debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC ("Avis Budget Rental Car Funding"), consisted of: As of December 31,
| 2024 | 2023 | |
|---|---|---|
| (9) | S 14,14 | 3 $ 15,502 |
| Americas – Debt d |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, as of December 31, 2023, the debt borrowings for Budget's Americas operations was $1,075 million. This figure represents the amount Budget's Americas operations had borrowed, excluding debt due to Avis Budget Rental Car Funding.
This debt is part of Budget's overall financing strategy for acquiring vehicles and other assets. The FDD also mentions that these borrowings are collateralized by vehicles and related assets. For Americas - Debt borrowings, the collateral was valued at $1.5 billion.
Prospective franchisees should consider Budget's debt levels and financing strategies as part of their investment decision. Understanding how Budget manages its debt can provide insights into the financial stability and operational practices of the company. It's also important to note the distinction between 'Debt due to Avis Budget Rental Car Funding' and 'Debt borrowings' as they may have different implications or collateral arrangements.