What was Budget's contribution to multiemployer plans for the year ended December 31, 2022?

According to Budget's 2025 Franchise Disclosure Document, the company made contributions to multiemployer plans. For the year ended December 31, 2022, Budget contributed $8 million to these plans.

Multiemployer plans carry specific risks for participating employers like Budget. These include the possibility that assets contributed by Budget could be used to provide benefits to employees of other participating employers. Additionally, if another employer withdraws from the plan, Budget and the remaining participants might have to cover the unfunded obligations. If Budget chooses to stop participating in a multiemployer plan, they may be required to make a contribution based on the underfunded status of the plan. Budget also has no control over the investment decisions made for these multiemployer plans.

Prospective franchisees should be aware that these multiemployer plan contributions are part of Budget's overall financial obligations. Significant changes to these contribution amounts in future years could impact Budget's profitability and financial stability, which could indirectly affect franchisees. It is advisable for potential franchisees to discuss Budget's multiemployer plan obligations and funding status with the franchisor to fully understand the potential financial implications.