Does the FDD include notes to the Consolidated Statements of Cash Flows for Budget?
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the financial statements of Avis Budget Group, Inc., which includes Budget, do include notes to the Consolidated Statements of Cash Flows. Exhibit G of the FDD contains the audited consolidated balance sheets as of December 31, 2024, and 2023, along with the consolidated statements of operations, stockholders' equity, comprehensive income, and cash flows for the years ended December 31, 2024, 2023, and 2022. These financial statements also include related notes.
The inclusion of these notes is a standard accounting practice that provides additional details and explanations to the figures presented in the core financial statements. These notes can cover a wide range of topics, such as the basis of presentation, accounting policies, debt obligations, leases, and other significant items that impact the company's financial position and performance. For instance, Note 6 discusses business acquisitions, while other notes explain the company's accounting policies on consolidation, revenue recognition, and currency transactions.
For a prospective Budget franchisee, reviewing these notes is crucial for a comprehensive understanding of the financial health and reporting practices of Avis Budget Group, Inc. Understanding the notes to the financial statements can help a franchisee assess the risks and opportunities associated with investing in a Budget franchise. The notes provide context and clarity that are essential for making informed business decisions.
Specifically, franchisees may want to pay close attention to notes regarding debt, as this can impact the financial stability of the parent company. Notes on revenue recognition and accounting policies can also provide insights into how the company manages its finances and reports its performance. The notes related to cash flows will give franchisees a better understanding of where Budget's money is coming from and where it is going. Overall, the notes to the consolidated financial statements are a critical component of the FDD and should be carefully reviewed by any potential franchisee.