If I obtain financing through the SBA for my Budget franchise, am I required to sign an addendum?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if you obtain financing through the Small Business Administration (SBA) to finance your Budget franchise, you are required to sign the SBA Addendum to Franchise Agreement. This addendum is included as Exhibit H-1 in the FDD.
This requirement ensures that both you and Budget are in compliance with SBA regulations and guidelines. The SBA has specific requirements for franchise agreements when providing financing, and the addendum likely addresses these requirements.
As a prospective franchisee, it is important to carefully review Exhibit H-1, the SBA Addendum to Franchise Agreement, to understand your obligations and responsibilities when using SBA financing. You should consult with a legal and financial advisor to fully understand the implications of signing the addendum.