How many Budget outlets closed in Indiana during 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Outlets Reacquired from Franchisee | Outlets Closed | Outlets Sold to Franchisees | Outlets at Year End |
|---|---|---|---|---|---|---|---|
| Indiana | 2022 | 22 | 0 | 0 | 1 | 0 | 21 |
| 2023 | 21 | 0 | 0 | 0 | 0 | 21 | |
| 2024 | 21 | 0 | 0 | 4 | 0 | 17 |
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 closed in Indiana during 2022. At the start of 2022, there were 22 Budget outlets in Indiana. During 2022, no new outlets opened, and one closed, leaving 21 outlets at the end of the year.
This information is valuable for potential franchisees as it provides insight into the stability and performance of Budget franchises in Indiana. A closure could be due to various factors, such as poor management, unfavorable location, or economic downturn. It is important to investigate the reasons behind any closures to assess the potential risks and opportunities associated with investing in a Budget franchise in that specific area.
It is also worth noting that the FDD includes a separate table that tracks franchise terminations, non-renewals, and other reasons for ceasing operations. However, this table reports that there was one franchised Budget location in Indiana during 2022, and that it remained open throughout the year. This discrepancy suggests that the 'Outlets Closed' in the first table may refer to company-owned locations, not franchised locations. A prospective franchisee should seek clarification from Budget on this point.
Overall, while one closure in a single year may not necessarily indicate a systemic problem, it is a factor that prospective franchisees should consider as part of their due diligence process. They should also compare this closure rate with those of other states and with industry averages to gain a broader perspective on the performance of Budget franchises.