When a licensee transfers their license, what verification must be submitted to Budget to demonstrate the proposed transferee's ability to finance the rental business?

According to Budget's 2025 Franchise Disclosure Document, a Transferring Licensee must submit written notice of its intent to transfer the license to Budget. As part of this notification, the proposed Transferee must provide verification from banks or other financial institutions that they have secured lines of credit for fleet financing in amounts necessary to operate the Rental Business. This verification is crucial for Budget to assess the financial viability of the proposed Transferee.

In addition to verifying credit lines, the proposed Transferee must also submit financial statements for the past three years, including an opening balance sheet for the Rental Business. They also need to provide a copy of the forecast or pro forma financial statements completed on the Rental Business, which was submitted to fleet financing or other financing sources. These documents collectively help Budget evaluate the financial strength and credit history of the Transferee, as well as the proposed capitalization of the Rental Business.

Budget will also consider the Transferee's ability to operate the Rental Business at a reasonable profit, taking into account the financial requirements of the buy/sell agreement and the Rental Business itself. They will also look at the profitability of similarly situated licensees and other businesses owned or operated by the Transferee. This comprehensive financial review ensures that the proposed Transferee has the financial capacity to successfully manage and grow the Budget franchise.