What is the relationship between AESOP Leasing L.P. and the Budget franchise system?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 10.41 | Fourth Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Lesser, Avis Budget Car Rental, LLC, as Lessee, as Administrator and as Finance Lease Guarantor. Avis Rent A Car System, LLC, as Lessee, and Budget Rent A Car System, Inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (incorporated by reference to Exhibit 10,39(c) to the Company's Annual Report on From 10-K for the year ended December 31, 2013, dated Parvay 20, 2014). 2013, dated Parvay 20, 2014). | | 10.42 | Fifth Amendment, dated as of July 28, 2022, among AESOP Leasing L.P., as Lessor, Avis Budget Car Rental, L.C. as Lessee, as Administrator and as Finance Lease Guarantor. Avis Rent A Car System. L.C. as Lessee, and Budget Rent A Car System, inc., as Lessee, to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.4 to the Company's Quarterly, Report on Form 10-Q for the quarterly pende anded September 39, 2024 (added November 1, 2022). | | 10.43 | AESOP I Operating Sublease Agreement dated as of March 26, 2013, between Zipcar, Inc., as Sublessee and Avis Budget Car Rental, LLC, as Sublessor (Incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the guarterly period ended March 31, 2013, dated May 8, 2013), | | 10.44 | Second Amended and Restated Administration Agreement, dated as of June 3, 2004, among Cendant Rental Car Funding (AESOP) LLC***, AESOP Leasing L.P., AESOP Leasing Corp., II. Avis Rent A Car System.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, AESOP Leasing L.P. has a lessor/lessee relationship with Budget Rent A Car System, Inc. Specifically, AESOP Leasing L.P. acts as the Lessor in the Amended and Restated Master Motor Vehicle Finance Lease Agreement, with Budget Rent A Car System, Inc. acting as the Lessee. This agreement, initially dated June 3, 2004, has been amended multiple times.
This arrangement indicates that AESOP Leasing L.P. is involved in leasing motor vehicles to Budget. The amendments to the lease agreement suggest an ongoing and evolving financial relationship between the two entities. Avis Budget Car Rental, LLC also appears in the agreements as a Lessee, Administrator, and Finance Lease Guarantor, indicating a broader structure involving multiple related companies.
Furthermore, AESOP Leasing L.P. is also party to a Second Amended and Restated Administration Agreement, dated as of June 3, 2004, with Avis Rent A Car System. Inc., and Budget Rent A Car System, LLC. This agreement suggests that AESOP Leasing L.P.'s role extends beyond just leasing and includes administrative functions related to car rentals. These administrative functions are further defined in the First Amendment, dated August 16, 2013, which includes Budget Car Rental, LLC as an Administrator.
For a prospective Budget franchisee, this information highlights the complex financial and administrative relationships within the Budget car rental system. It is important to understand how these leasing and administrative agreements might affect the franchisee's operations, particularly concerning vehicle financing and related costs. A franchisee should seek clarification from Budget regarding the specific terms of these agreements and their potential impact on the franchisee's financial obligations and operational procedures.