Does Budget guarantee a Budget franchisee's note?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Budget nor its affiliates offers direct or indirect financing to Budget Franchise owners. Budget does not guarantee your note, lease, vendor purchases, or any other obligation.
We are listed on the SBA Franchise Directory located at: https://www.sba.gov/document/support- -sba-franchise-directory. If you obtain financing through the SBA, you must sign the SBA Addendum to Franchise Agreement, attached as Exhibit H-1.
Source: Item 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget does not offer any direct or indirect financing to its franchisees. Furthermore, Budget explicitly states that it will not guarantee a franchisee's note, lease, vendor purchases, or any other financial obligations.
This means that prospective Budget franchisees must secure their own financing without relying on Budget to act as a guarantor. Franchisees are expected to finance 100% of their fleet purchase and provide security for this financing, potentially using the fleet itself, a personal guarantee, or personal assets. This lack of financial backing from Budget places the full financial risk and responsibility on the franchisee.
This is a fairly common practice in the franchise industry, as many franchisors do not provide direct financing or guarantees. However, it's crucial for potential franchisees to carefully consider their financial resources and ability to secure financing independently before investing in a Budget franchise. The franchisee should also be aware that Budget is listed on the SBA Franchise Directory.