How many Budget franchises ceased operations in Alabama during 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Term- inations | Non- Renewals | Reacquired by Franchisor | Ceased Operations/Other Reasons | Outlets at Year End |
|---|---|---|---|---|---|---|---|---|
| Alabama | 2022 | 10 | 0 | 0 | 0 | 0 | 0 | 10 |
| 2023 | 10 | 0 | 0 | 0 | 0 | 1 | 9 | |
| 2024 | 9 | 0 | 0 | 0 | 0 | 0 | 9 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, one Budget franchise in Alabama ceased operations for "other reasons" during 2023. At the start of 2023, there were 10 Budget franchises operating in Alabama. By the end of 2023, the number decreased to 9, with the single closure attributed to reasons other than termination, non-renewal, or reacquisition by the franchisor.
This information is valuable for potential franchisees as it provides insight into the stability and performance of Budget franchises in specific geographic areas. A high number of closures could indicate market challenges or other issues that might affect the success of a new franchise. Conversely, a low number of closures, as seen in Alabama, could be a positive sign.
Prospective franchisees should investigate the reasons behind any closures, even if the number seems low. Understanding why a franchise ceased operations can help in assessing the risks and opportunities associated with investing in a Budget franchise in a particular state. It's also important to consider the overall number of franchises in a state when evaluating closure rates; a single closure in a state with few franchises might be more significant than several closures in a state with many locations.