How does the Fourth Amended and Restated Cooperation Agreement impact the Budget brand's operations?

According to Budget's 2025 Franchise Disclosure Document, the Fourth Amended and Restated Cooperation Agreement, dated December 23, 2022, is an agreement among Avis Budget Group, Inc., SRS Investment Management, LLC, and certain affiliates. This agreement is referenced as Exhibit 10.1 in the company's Current Report on Form 8-K dated December 27, 2022.

For a prospective Budget franchisee, this agreement is significant because it outlines the cooperative relationship between Budget's parent company (Avis Budget Group) and other key entities. These types of agreements often cover important aspects of the franchise system's operations, such as financial arrangements, strategic decision-making, and the roles/responsibilities of different parties involved in the Budget brand.

While the FDD references the existence of this agreement, it does not provide specific details about its contents or how it directly impacts franchise operations. A potential franchisee should obtain and carefully review the referenced Exhibit 10.1 to fully understand the implications of this agreement. Understanding this agreement is crucial for assessing the stability, strategic direction, and potential risks associated with investing in a Budget franchise.