What assets secure Budget's floating rate term loan due August 2027?

According to Budget's 2025 Franchise Disclosure Document, the floating rate term loan due August 2027 is part of Budget's senior revolving credit facility. This facility is secured by pledges of capital stock of certain of Budget's subsidiaries. Additionally, the loan is secured by liens on substantially all of Budget's intellectual property, as well as certain other real and personal property.

For a prospective Budget franchisee, this information is relevant because it provides insight into the financial structure and obligations of the parent company. The assets securing the loan represent collateral that could be at risk in the event of financial distress. Understanding the nature of these secured assets can help a franchisee assess the overall financial stability of Budget.

The fact that the loan is secured by a broad range of assets, including intellectual property, indicates the importance of these assets to Budget's overall financial health. The presence of restrictive covenants related to debt also highlights the importance of Budget maintaining compliance with its financial obligations.

It's important to note that the FDD provides a snapshot in time, and the specific assets securing the loan and the terms of the credit facility could change over time. A prospective franchisee should consider consulting with a financial advisor to fully understand the implications of Budget's debt structure and financial condition.