Does the FDD provide detailed line items for 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. 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, Item 21 includes the audited consolidated financial statements of Avis Budget Group, Inc. Exhibit G specifically contains the consolidated statements of cash flows for the years ended December 31, 2024, 2023, and 2022. These statements are related to Avis Budget Group, Inc.
The inclusion of these statements allows prospective Budget franchisees to review the company's cash flow activities over the past three years. This information is crucial for understanding how the company generates and uses cash, which can be indicative of its financial health and stability. Reviewing these statements can help franchisees assess the company's ability to meet its financial obligations and fund its operations.
Furthermore, the FDD includes notes to the consolidated financial statements, which provide additional context and explanations of the figures presented. These notes are essential for a comprehensive understanding of the cash flow statements and the underlying accounting policies used in their preparation. The financial statements have been audited by Deloitte & Touche LLP, offering an additional level of assurance regarding their accuracy and reliability.