What litigation and bankruptcy history timeframe does Budget review for the Transferee and related parties during the transfer process?

According to Budget's 2025 Franchise Disclosure Document, when a license is transferred, Budget reviews the litigation and bankruptcy history of the Transferee, any related company, its stockholders, members, partners, and management team. This review covers at least the last five years.

Budget's thoroughness in examining the Transferee's background suggests they prioritize stability and financial responsibility within their franchise network. This requirement ensures that new franchisees have a proven track record, minimizing risks associated with potential legal or financial issues.

For a prospective Budget franchisee, this means that any past litigation or bankruptcy issues within the last five years could impact the approval of a transfer. It is important to be transparent and prepared to provide all necessary documentation related to these matters during the transfer process.