Does Budget guarantee any other obligation of a Budget franchisee?
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 guarantee any obligations of its franchisees. Specifically, Budget does not guarantee a franchisee's note, lease, vendor purchases, or any other financial or contractual obligation. This means that franchisees are solely responsible for securing their own financing and fulfilling their own obligations.
This lack of guarantee is a standard practice in franchising. Franchisees should be prepared to independently manage their financial responsibilities. Prospective franchisees should carefully review all financing options and ensure they have sufficient capital and resources to meet their obligations.
Budget does state that it is listed on the SBA Franchise Directory. If a franchisee obtains financing through the SBA, they must sign the SBA Addendum to the Franchise Agreement.