How many Budget outlets 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 outlet in Alabama ceased operations for other reasons during 2023. At the start of 2023, there were 10 outlets, and by the end of the year, the number decreased to 9, with 1 outlet listed as having ceased operations for other reasons.
This information is crucial for potential franchisees as it provides insight into the stability and performance of Budget franchises in specific geographic areas. Understanding the reasons behind outlet closures can help franchisees assess the risks and opportunities associated with investing in a particular location.
It's important to note that 'ceased operations' can encompass various reasons, such as poor performance, failure to meet brand standards, or other unforeseen circumstances. Prospective franchisees should investigate the specific reasons for closures in their target areas to gain a comprehensive understanding of the local market dynamics and potential challenges. This information, combined with other due diligence efforts, can contribute to making a well-informed investment decision.