Does Budget offer direct financing to Budget franchise owners?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
o 11.9 of the Budget License Agreement | | Obligations | X and XI of the Rental System Agreement |
ITEM 10 FINANCING
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.
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, Budget need not provide you with any assistance.
Before the Opening of Your Budget Franchise.
Before you open your business, Budget will:
- Approve the trade name for your Budget Franchise (the Budget License Agreement, initial recital of parties).
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- Designate your territory.
Source: Item 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget does not offer direct or indirect financing to its franchise owners. Budget also does not guarantee any financial obligations, such as notes, leases, or vendor purchases, that a franchisee may incur. This means prospective franchisees must secure funding for their Budget franchise through third-party sources.
Budget expects franchisees to finance 100% of their fleet's purchase price. Franchisees are expected to provide security for this financing, potentially using the fleet itself, personal guarantees from the franchisee or their owners, and possibly personal assets. Franchisees will then make finance payments directly to the financial institutions they choose for this financing.
Since Budget does not offer financing for any part of the initial investment, franchisees should carefully consider their financing options and consult with financial advisors to ensure they have sufficient capital. The FDD also mentions that Budget is listed on the SBA Franchise Directory, which may be a resource for franchisees seeking financing through the Small Business Administration. If a franchisee obtains financing through the SBA, they must sign the SBA Addendum to the Franchise Agreement.