Where can I find the instrument of guaranty related to Avis Budget Group, Inc.'s guarantee of Budget's obligations?
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, the instrument of guaranty related to Avis Budget Group, Inc.'s guarantee of Budget's obligations is included in Exhibit G of the FDD. Avis Budget Group, Inc. guarantees Budget's performance of its obligations under the Budget License Agreements. Additionally, Budget files state-specific guarantees of performance with the appropriate agencies in states where their licenses are registered to be offered and sold.
Exhibit G contains the audited consolidated balance sheets of Avis Budget Group, Inc. as of December 31, 2024 and 2023, along with related consolidated statements of operations, stockholders' equity, comprehensive income, and cash flows for the years ended December 31, 2024, 2023, and 2022, including related notes.
For a prospective franchisee, this means that Avis Budget Group, Inc. is financially backing Budget's commitments to its franchisees. Reviewing Exhibit G will provide details of this guarantee and the financial stability of Avis Budget Group, Inc.