How many Budget franchises were reacquired by the franchisor in California during 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Number of Transfers | |---|---|---| | New Jersey | 2022 | 25 | | | 2023 | 0 | | | 2024 | 0 | | Montana | 2022 | 0 | | | 2023 | 0 | | | 2024 | 7 | | South Dakota | 2022 | 0 | | | 2023 | 0 | | | 2024 | 1 | | Wyoming | 2022 | 0 | | | 2023 | 0 | | | 2024 | 2 | | Totals | 2022 | 25 | | | 2023 | 0 | | | 2024 | 10 | TABLE NO. 3 STATUS OF FRANCHISED OUTLETS FOR YEARS 2022-20241
| State | Year | Outlets at Start of Year | Outlets Opened | Term- inations | Non- Renewal
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, there were 3 franchises reacquired by Budget in California during 2023. This means that Budget took over the operation of these locations, which could be due to various reasons such as the franchisee's non-compliance with the franchise agreement, poor performance, or mutual agreement.
For a potential franchisee, this information is relevant as it provides insight into the stability and performance of franchises within the Budget system. A high number of reacquired franchises could indicate potential issues with the franchise model, franchisee support, or market conditions in that specific area. Conversely, a low number suggests a stable and well-managed franchise system.
It's important to note that the reasons for reacquisition can vary, and it's advisable for prospective franchisees to inquire about the specific circumstances behind these reacquisitions to gain a better understanding of the risks and opportunities associated with investing in a Budget franchise. Reviewing the trends over multiple years, as presented in the table, can also provide a more comprehensive view of franchise performance and stability within the system.