What was the amount of Budget's long-term operating lease liabilities as of December 31, 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||
| Property leases Operating lease ROU assets | $ | 3,057 $ | 2,654 | ||||
| Short-term operating lease liabilities (e) | $ | 628 $ | 576 | ||||
| Long-term operating lease liabilities | 2,484 | 2,117 |
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 company's long-term operating lease liabilities totaled $2,117 million. This figure represents Budget's financial obligations for property leases extending beyond one year. These leases are a critical component of Budget's operational infrastructure, covering real estate used for rental locations, offices, and other facilities necessary for business operations.
For a prospective franchisee, understanding Budget's lease obligations provides insight into the company's financial commitments and overall financial health. Lease liabilities are a standard part of doing business for a rental car company like Budget, which requires physical locations to operate. Monitoring these liabilities helps assess the company's ability to manage its long-term financial obligations and its potential impact on profitability.
The fact that Budget itemizes and discloses these lease obligations in its FDD offers transparency to potential franchisees. Reviewing these figures year-over-year, as presented in the FDD, can reveal trends in Budget's leasing strategy and its approach to managing long-term liabilities. Franchisees should consider these liabilities in the context of Budget's overall financial performance and growth strategy.