How many Budget outlets in California were reacquired by the franchisor in 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 three outlets in California that were reacquired by Budget in 2023. The table provided in Item 20 of the FDD details the changes in the number of franchise outlets over the past three years. This includes information on outlets that were opened, terminated, not renewed, reacquired by Budget, or ceased operations for other reasons.
For a potential franchisee, this information is useful in understanding the stability and performance of existing Budget franchises. A high number of reacquired or closed outlets could indicate potential issues with the franchise system, such as lack of profitability or support. Conversely, a low number could suggest a healthy and well-managed franchise network.
It's important to note that the reasons for reacquisition can vary. Budget may reacquire an outlet due to the franchisee's failure to meet performance standards, a mutual agreement to terminate the franchise agreement, or other strategic reasons. A prospective franchisee should inquire about the reasons for any reacquired outlets to gain a better understanding of the overall health and stability of the Budget franchise system.
The FDD also includes additional information that may be helpful for prospective franchisees. Exhibit E lists the Budget franchise owners as of December 31, 2024, and the addresses of their outlets. Exhibit F lists the names and home addresses of franchisees who had their Budget License Agreements terminated, cancelled, or not renewed, or who otherwise voluntarily or involuntarily ceased to do business under the Budget License Agreement, during 2024. Reviewing these exhibits can provide additional insights into the experiences of current and former franchisees.