Are all beneficial owners of a Budget licensee required to execute Budget's then-current standard Personal Guarantee, and where is the current form of this guarantee located?

According to Budget's 2025 Franchise Disclosure Document, all persons who are the beneficial owners of a Budget licensee are required to execute Budget's then-current standard Personal Guarantee. The current form of the Personal Guarantee is included as Exhibit A to the Franchise Agreement.

This requirement means that each individual with a beneficial ownership stake in the Budget franchise must personally guarantee the financial obligations of the franchise to Budget. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case the franchisee defaults on its financial obligations.

Prospective franchisees should carefully review Exhibit A and understand the full extent of their obligations under the Personal Guarantee. They should also consult with an attorney or financial advisor to assess the risks and implications of providing such a guarantee.