What is the description of the exhibit incorporated by reference in the Budget FDD?
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, Exhibit G includes the audited consolidated balance sheets of Avis Budget Group, Inc. as of December 31, 2024, and 2023, along with the related consolidated statements of operations, stockholders' equity, comprehensive income, and cash flows for the years ended December 31, 2024, 2023, and 2022. The exhibit also contains the related notes of Avis Budget Group, Inc.
Since Avis Budget Group, Inc. guarantees Budget's performance of its obligations under the Budget License Agreements, the instrument of guaranty is included in Exhibit G. Furthermore, Budget files state-specific guarantees of performance with the appropriate agencies in states where their licenses are registered to be offered and sold.
Prospective franchisees should carefully review Exhibit G, including the financial statements and guaranty, to understand the financial health and obligations of Avis Budget Group, Inc., as it directly impacts Budget's ability to meet its obligations to franchisees. Understanding the guarantor's financial standing is a crucial aspect of assessing the overall risk and stability of the franchise system.