When a licensee transfers their license, what documentation regarding the proposed transferee's financial history must be submitted to Budget for review?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Transferring Licensee will submit to Budget written notice of its intent to transfer, together with all of the following documents and information for Budget's review, with such documents and information being certified as true, correct and complete by Transferee, its shareholders, members and/or partner(s):
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- Financial statements of the Transferee, its shareholders, members and/or partners for the past three (3) years and an opening balance sheet for the Rental Business.
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- Verification from banks or other financial institutions that the Proposed Transferee has secured lines of credit for fleet financing in amounts necessary to operate the Rental Business.
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- A copy of the forecast or pro forma financial statements completed by the proposed Transferee on the Rental Business, which was submitted to fleet financing or other financing sources.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, a transferring licensee must submit specific financial documents of the proposed transferee to Budget for review. These documents must be certified as true, correct, and complete by the transferee, its shareholders, members, or partners.
The required financial documents include financial statements of the transferee, its shareholders, members, or partners for the past three years. Additionally, an opening balance sheet for the rental business must be provided.
Budget also requires verification from banks or other financial institutions confirming that the proposed transferee has secured lines of credit for fleet financing in amounts necessary to operate the rental business. Furthermore, a copy of the forecast or pro forma financial statements completed by the proposed transferee on the rental business, which was submitted to fleet financing or other financing sources, must be included. This comprehensive financial review ensures that the proposed transferee has the financial capacity and stability to successfully operate the Budget franchise.