Are the cash flow statements for Budget presented on a consolidated basis?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit G includes the audited consolidated balance sheets of Avis Budget Group, Inc. as of December 31, 2024 and 2023, and the related consolidated statements of operations, stockholders' equity, comprehensive income and cash flows for the years ended December 31, 2024, 2023, and 2022 and the related notes of Avis Budget Group, Inc. Avis Budget Group, Inc. guarantees our performance of our obligations under the Budget License Agreements we enter into. The instrument of guaranty is included in Exhibit G. We file state specific guarantees of performance with the appropriate agencies in the states where our licenses are registered to be offered and sold.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the cash flow statements are presented on a consolidated basis. Specifically, Exhibit G includes the audited consolidated balance sheets of Avis Budget Group, Inc. as of December 31, 2024 and 2023, and the related consolidated statements of operations, stockholders' equity, comprehensive income and cash flows for the years ended December 31, 2024, 2023, and 2022 and the related notes of Avis Budget Group, Inc.
This means that the financial statements reflect the combined financial performance and position of Avis Budget Group, Inc. and its subsidiaries. This is a standard practice for franchise systems with multiple entities, as it provides a comprehensive view of the overall financial health of the entire organization.
For a prospective Budget franchisee, this indicates that the financial data presented offers a broad picture of the company's financial stability and performance. However, it's important to remember that consolidated statements may not reveal the specific financial details of individual Budget franchise locations. Therefore, potential franchisees should still conduct their own due diligence and seek further information to assess the financial viability of their specific franchise investment.