What companies are party to the Separation and Distribution Agreement referenced in the Budget FDD?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| EXHIBIT NO. | DESCRIPTION Separation and Distribution Agreement by and among Cendant Corporation*, Realogy Corporation, Wyndham Worldwide Corporation and Travelport Inc., dated as of July 27, 2006 (Incorporated by reference to |
|---|---|
| 2.1 | Separation and Distribution Agreement by and among Cendant Corporation, Realogy Corporation, Wyndham Worldwide Corporation, Wyndham Worldwide Corporation and Travelport Inc. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Separation and Distribution Agreement, dated July 27, 2006, is by and among Cendant Corporation, Realogy Corporation, Wyndham Worldwide Corporation, and Travelport Inc. This agreement is listed as Exhibit 2.1 in the FDD.
This agreement likely outlines the terms and conditions under which these companies separated or distributed assets, liabilities, or businesses among themselves. For a prospective Budget franchisee, understanding the implications of this agreement directly may not be immediately apparent.
However, it is important to recognize that such agreements can have long-term effects on the financial structure and obligations of the entities involved, including Budget. A franchisee might want to understand if this agreement has any ongoing impact on Budget's financial stability or its ability to meet its obligations to franchisees. It would be prudent for potential franchisees to discuss this agreement with Budget during their due diligence to fully understand any potential implications.