If a Budget franchisee obtains financing through a source other than the SBA, is the SBA Addendum required?

According to Budget's 2025 Franchise Disclosure Document, the SBA Addendum to the Franchise Agreement is only required if a franchisee obtains financing through the Small Business Administration (SBA). If a Budget franchisee secures funding from a different source, they would not be required to sign the SBA Addendum.

This requirement is explicitly tied to SBA financing, meaning that Budget franchisees have flexibility in choosing their financing options without necessarily triggering additional paperwork or requirements related to the SBA. This could be beneficial for franchisees who have access to other favorable financing terms or prefer to avoid the SBA loan process.

Prospective Budget franchisees should carefully consider their financing options and understand the specific requirements associated with each. While the SBA Addendum is only necessary for SBA-backed loans, other financing sources may have their own sets of conditions and agreements that need to be reviewed and understood.