Where can I find the SBA Addendum to the Franchise Agreement for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document issued on April 30, 2025 and effective in the franchise registration states on the dates listed in Exhibit A. This disclosure document included the following Exhibits:
- A State Agencies/Agents for Service of Process/State Effective Dates
- B Laws and Regulations Concerning the Car Rental Industry (Including Disclosures Regarding Americans with Disabilities Act)
- C FTC Consent Orders
- D Confidentiality Agreement
- E List of Franchisees
- F List of Former Franchisees and Franchisees Who Have Not Been in Communication with Budget
- G Financial Statements of Avis Budget Group, Inc.
- H Budget Rent A Car System License Agreement, including Nondisclosure and Noncompetition Agreement
- H-1 SBA Addendum
- H-2 General Release
- I Rental System Agreement
- J Intercity Rules and Regulations
- K State-Specific Additional Disclosures and Riders
- L Table of Contents of Manual
Source: Item 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the SBA Addendum to the Franchise Agreement is included as Exhibit H-1. Item 10 also mentions that if you obtain financing through the SBA, you must sign the SBA Addendum to Franchise Agreement, attached as Exhibit H-1.
Prospective Budget franchisees who plan to seek financing through the Small Business Administration (SBA) should carefully review Exhibit H-1, as it contains specific terms and conditions required by the SBA. This addendum likely addresses aspects of the franchise agreement that the SBA requires to be standardized or modified to comply with its lending criteria.
It is important for franchisees to understand how the SBA Addendum interacts with the main Budget License Agreement (Exhibit H). Franchisees should consult with legal and financial advisors to fully grasp the implications of both documents, especially concerning their rights and obligations under the SBA loan.
Exhibit A lists the state agencies and agents for service of process, along with state effective dates, while Exhibit G contains the financial statements of Avis Budget Group, Inc. Exhibit L provides the table of contents of the manual. Understanding the contents of all exhibits is crucial for making an informed decision about investing in a Budget franchise.