What basis does Budget use to match portions of participating employees' contributions to defined contribution savings plans?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Stock-Compensation Expense
During 2024, 2023 and 2022, we recorded stock-based compensation expense of $19 million ($14 million, net of tax), $30 million ($21 million, net of tax), and $25 million ($17 million, net of tax), respectively.
19. Employee Benefit Plans
Defined Contribution Savings Plans
We sponsor several defined contribution savings plans in the United States and certain foreign subsi
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the company sponsors several defined contribution savings plans in the United States and certain foreign subsidiaries, offering eligible employees a way to save for retirement. Budget matches a portion of participating employees' contributions to these plans.
The specific basis on which Budget matches these contributions is determined by the specifics of each plan. During the years 2022, 2023, and 2024, Budget's contributions to these plans totaled $26 million, $29 million, and $31 million, respectively.
For a prospective franchisee, this indicates that Budget provides retirement savings options for its employees, including matching contributions. However, the exact matching formula (e.g., dollar-for-dollar up to a certain percentage, or a tiered system) is not detailed in this document. A franchisee may want to inquire about the specifics of the matching program during their due diligence to understand the full benefits package offered to employees.