What was the amount of debt borrowings for Budget's Americas operations as of December 31, 2024?
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, the debt borrowings for its Americas operations as of December 31, 2024, was $1,160 million. This figure represents the debt specifically categorized as 'Americas - Debt borrowings'.
This debt is part of Budget's overall financing strategy, which includes various debt instruments to fund vehicle acquisitions and operations. The Americas - Debt borrowings are collateralized by $1.5 billion in vehicles and related assets. This indicates that Budget leverages its assets to secure financing, a common practice in capital-intensive industries like car rentals.
Prospective franchisees should understand how Budget manages its debt, as it can impact the financial stability and operational capabilities of the company. While this specific figure relates to Budget's overall corporate debt, understanding the franchisor's financial health is crucial for franchisees, as it can affect the support and resources available to them.