If a Budget franchisee defaults on a loan, does Budget provide any financial assistance?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
car), would be $450,000 to $1,290,000 for a 30-vehicle fleet composed solely of economy or luxury cars. Budget expects franchisees to finance 100% of the purchase price of their fleet, and expects that you will provide security for this financing using the fleet, your (or your owners') personal guarantee, and, perhaps, certain of your (or your owners') personal assets. If you finance the fleet, you will make finance payments to financial institutions you select to provide the financing. Budget expects that your monthly fleet expenses will increase after your first three months of operation as your fleet size increases.
Source: Item 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget does not offer financial assistance to franchisees who default on a loan. Item 7 states that Budget franchisees are expected to finance 100% of their fleet purchase price and provide security for this financing, using the fleet itself, personal guarantees, and possibly personal assets.
Furthermore, Budget does not offer direct or indirect financing for any part of the initial investment. Franchisees are expected to secure their own financing from financial institutions of their choosing and make payments directly to those institutions.
This means that prospective Budget franchisees should be prepared to handle all financial obligations independently, without relying on Budget for financial support in case of loan default or other financial difficulties. It is crucial for franchisees to carefully assess their financial capabilities and risks before investing in a Budget franchise.