Does the FDD contain any qualifications or disclaimers regarding the Consolidated Statements of Cash Flows for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Stockholders and the Board of Directors of Avis Budget Group, Inc. Parsippany, New Jersey
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Avis Budget Group, Inc. and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the consolidated financial statements of Avis Budget Group, Inc., which includes Budget, have been audited by Deloitte & Touche LLP. Their report indicates that the financial statements, including the consolidated statements of cash flows, present fairly the financial position, results of operations, and cash flows of the company as of December 31, 2024, 2023, and 2022, in conformity with accounting principles generally accepted in the United States of America. This suggests that an independent accounting firm has reviewed the statements and found them to be presented fairly and in accordance with established accounting standards.
The report explicitly states that the responsibility for these financial statements lies with the management of Avis Budget Group, Inc., while Deloitte & Touche LLP's responsibility is to express an opinion based on their audits. This division of responsibility is standard practice in financial auditing, ensuring that management prepares the statements and an independent firm verifies their accuracy and fairness. The audit was conducted in accordance with U.S. federal securities laws and the regulations of the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB), further emphasizing the rigor and regulatory oversight involved.
Furthermore, the FDD includes notes to the consolidated financial statements that provide additional context and detail regarding the figures presented. These notes cover various aspects, such as the basis of presentation, significant accounting policies, and details of vehicle programs. For instance, Note 1 clarifies that Avis Budget Group, Inc. provides mobility solutions worldwide and that the consolidated financial statements include the accounts of Avis Budget Group, Inc. and its subsidiaries. The notes also explain how vehicle programs are treated separately due to their unique funding and repayment structures. These disclosures enhance the transparency and understanding of the financial statements for prospective franchisees.