Who is Budget's predecessor?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Budget's predecessor is Budget Rent A Car Corporation (the "Predecessor"). The Predecessor's principal business address was 4225 Naperville Road, Lisle, Illinois 60532. Budget acquired the rights to Budget's Proprietary Marks and the Rent A Car System from the Predecessor on November 22, 2002 (the "Acquisition") (see Item 4). In the Acquisition, Budget also acquired certain assets and liabilities of Budget Rent A Car International, Inc. ("RACII"), an affiliate of the Predecessor. The Predecessor (directly or through subsidiaries) operated Budget Rent A Car businesses and offered Budget Franchises from 1987 until 2002. Budget has been franchising car rental services since 1960 through various predecessors. Other than issuing franchises for retail car sales through a subsidiary, the Predecessor did not offer franchises in any other line of business.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget Rent A Car Corporation is Budget's predecessor. The predecessor's principal business address was 4225 Naperville Road, Lisle, Illinois 60532. Budget acquired the rights to Budget's Proprietary Marks and the Rent A Car System from the Predecessor on November 22, 2002. Budget also acquired certain assets and liabilities of Budget Rent A Car International, Inc. (RACII), an affiliate of the Predecessor, during the acquisition.
The predecessor, either directly or through its subsidiaries, operated Budget Rent A Car businesses and offered Budget Franchises from 1987 until 2002. Budget has been franchising car rental services since 1960 through various predecessors. The predecessor only issued franchises for retail car sales through a subsidiary and did not offer franchises in any other line of business.
Understanding the history of Budget and its predecessor can give potential franchisees insight into the evolution of the brand and its business practices. Knowing that Budget acquired its proprietary marks and rental system from its predecessor in 2002 helps clarify the legal foundation of the franchise system. Additionally, the information about the predecessor's franchising activities, specifically its focus on car rental and retail car sales, provides context for Budget's current franchising strategy.