What is the purpose of referencing the Fourth Amended and Restated Cooperation Agreement in the Budget FDD?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| 10.6 | Fourth Amended and Restated Cooperation Agreement, dated as of December 23, 2022, by and among Avis Budget Group, Inc., SRS Investment Management, LLC and certain of its affiliates (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 27, 2022). |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Fourth Amended and Restated Cooperation Agreement, dated December 23, 2022, is referenced as part of Item 21, which covers financial statements. The agreement is between Avis Budget Group, Inc., SRS Investment Management, LLC, and certain of its affiliates. The FDD incorporates this agreement by reference to Exhibit 10.1 of the company's Current Report on Form 8-K, dated December 27, 2022.
This reference indicates that the agreement is a significant document related to the financial structure or operations of Avis Budget Group, the parent company of Budget. By incorporating it by reference, Budget is directing potential franchisees to where they can find the full details of this agreement within the company's filings with the Securities and Exchange Commission (SEC).
For a prospective Budget franchisee, understanding this agreement could be important for assessing the financial stability and operational relationships of the parent company. While the FDD itself does not provide the full text of the agreement, it does provide the means to locate it. It would be prudent for a potential franchisee to review this agreement to fully understand its implications for Budget and its franchisees.