How many Budget outlets in Iowa were terminated in 2024?
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-
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 Iowa was terminated in 2024. The provided table in Item 20 details the status of franchised outlets for the years 2022-2024, broken down by state. The 'Terminations' column indicates the number of franchise agreements that were ended, either by the franchisee or Budget, during that year.
For a prospective franchisee, this information is crucial for assessing the stability and success rate of Budget franchises in specific locations. A higher number of terminations could indicate potential issues with the franchise model, market conditions, or franchisor-franchisee relationships. Conversely, a low number of terminations, as is the case in Iowa, may suggest a more stable and supportive environment.
It's important to note that a 'termination' can occur for various reasons, including the franchisee's decision to exit the business, failure to meet performance standards, or breach of the franchise agreement. While one termination in Iowa doesn't necessarily indicate a widespread problem, a prospective franchisee may want to investigate the specific circumstances behind the termination to gain a better understanding of the risks and challenges involved in operating a Budget franchise in that state.
Overall, the data presented in Item 20 provides valuable insights into the historical performance and stability of the Budget franchise system, allowing potential franchisees to make more informed decisions.