How many Budget franchises were transferred to new owners in New Jersey during 2022?

According to Budget's 2025 Franchise Disclosure Document, there were 25 franchise transfers to new owners in New Jersey during 2022. This indicates a potentially active market for existing Budget franchises in that state during that year. However, the FDD also shows that the number of transfers dropped to 0 in 2023 and 2024.

For a prospective franchisee, this information is relevant for a few key reasons. First, it provides insight into the resale market for Budget franchises. A high number of transfers could suggest a liquid market where franchisees can exit their businesses relatively easily. However, it could also signal potential issues with franchise profitability or franchisee satisfaction, prompting them to sell. The significant drop in transfers in subsequent years warrants further investigation to understand the reasons behind the change.

It is important to note that franchise transfers do not necessarily reflect the overall health of the Budget system. Other factors, such as new store openings, terminations, and non-renewals, also play a significant role. A prospective franchisee should investigate the reasons behind these transfers and compare them to industry averages to assess the risk and opportunity associated with investing in a Budget franchise in New Jersey. Further due diligence, including speaking with current and former franchisees, is essential to gain a comprehensive understanding of the franchise's performance and potential.