What is the name of the addendum I must sign if I obtain SBA financing for my Budget franchise?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Budget nor its affiliates offers direct or indirect financing to Budget Franchise owners. Budget does not guarantee your note, lease, vendor purchases, or any other obligation.
We are listed on the SBA Franchise Directory located at: https://www.sba.gov/document/support- -sba-franchise-directory. If you obtain financing through the SBA, you must sign the SBA Addendum to Franchise Agreement, attached as Exhibit H-1.
Source: Item 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, if you obtain financing through the Small Business Administration (SBA) to finance your Budget franchise, you are required to sign a specific addendum. This addendum is called the SBA Addendum to Franchise Agreement. A copy of this addendum is included as Exhibit H-1 in the FDD.
This requirement ensures that both you and Budget are in compliance with SBA regulations and guidelines. The SBA Addendum likely contains provisions that address the SBA's requirements for franchise financing, such as lender oversight, franchisee responsibilities, and franchisor obligations.
As a prospective franchisee, it is important to carefully review Exhibit H-1, the SBA Addendum to Franchise Agreement, to fully understand your obligations and the terms of the agreement. You should also consult with a legal and financial advisor to ensure that you are making an informed decision about financing your Budget franchise through the SBA.