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Where in the Budget Franchise Disclosure Document is additional information added to Item 5?

Q: Where in the Budget Franchise Disclosure Document is additional information added to Item 5?

- 3. THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT. - 4. The following is added as the first paragraph of Item 5: --- 4. The following sentence is added after the first sentence of the first paragraph in Item 5: "Budget applies the initial franchise fee to defray its costs of obtaining and screening franchisees, training, and assisting in the opening of your Budget Franchise." Source: Item 23 — RECEIPTS (FDD pages 80–426)

Budget Franchise · 2025 FDD

Answer from 2025 FDD Document

1. THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
- 1. The following is added as the first paragraph of Item 5:

The following sentence is added after the first sentence of the first paragraph in Item 5:

"Budget applies the initial franchise fee to defray its costs of obtaining and screening franchisees, training, and assisting in the opening of your Budget Franchise."

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

What This Means (2025 FDD)

According to Budget's 2025 Franchise Disclosure Document, additional information regarding Item 5 is included for franchisees in California and Minnesota.

For California, the FDD states that the following is added as the first paragraph of Item 5. This implies that prospective Budget franchisees in California will find an additional paragraph at the beginning of Item 5 that is specific to California franchise law.

For Minnesota, the FDD states that the following sentence is added after the first sentence of the first paragraph in Item 5: "Budget applies the initial franchise fee to defray its costs of obtaining and screening franchisees, training, and assisting in the opening of your Budget Franchise." This clarifies how Budget uses the initial franchise fee, which is helpful information for prospective franchisees in Minnesota.

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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