factual

Does the Budget franchise agreement require a Personal Guarantee, and if so, which exhibit contains the Personal Guarantee?

Q: Does the Budget franchise agreement require a Personal Guarantee, and if so, which exhibit contains the Personal Guarantee?

- 8. Budget expected that YOU will finance 100% of your vehicle fleet. YOU must provide security for any loan you obtain and personally guarantee any financing. This Guarantee will place your personal assets (perhaps including your house) at risk if your franchise fails. Source: Item 23 — RECEIPTS (FDD pages 80–426)

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

1. Budget expected that YOU will finance 100% of your vehicle fleet. YOU must provide security for any loan you obtain and personally guarantee any financing. This Guarantee will place your personal assets (perhaps including your house) at risk if your franchise fails.

Source: Item 23 — RECEIPTS (FDD pages 80–426)

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, franchisees are expected to finance 100% of their vehicle fleet. As a condition of obtaining financing, Budget requires franchisees to provide security for any loan and to personally guarantee the financing. This personal guarantee places the franchisee's personal assets, potentially including their house, at risk if the Budget franchise fails. The FDD does not specify which exhibit contains the personal guarantee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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