What was the reported amount for 'International – Finance leases' in Budget's 2023 financial statement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
e in compliance with the financial covenants governing our indebtedness.
14. Debt Under Vehicle Programs and Borrowing Arrangements
Debt under vehicle programs, including related party debt due to Avis Budget Rental Car Funding (AESOP) LLC ("Avis Budget Rental Car Funding"), consisted of: As of December 31,
| 2024 | 2023 | |
|---|---|---|
| (9) | S 14,14 | 3 $ 15,502 |
| Americas – Debt d |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the reported amount for 'International – Finance leases' in the 2023 financial statement was $55. This figure is presented in a table that summarizes debt under vehicle programs. The table provides a snapshot of Budget's financial obligations related to its international operations.
For a prospective franchisee, understanding these finance lease obligations is crucial. It provides insight into how Budget finances its international vehicle fleet. The use of finance leases suggests that Budget takes on the risks and rewards of ownership of these vehicles, which can impact the company's overall financial health and stability. Franchisees should consider how these financial strategies might affect Budget's ability to support its franchisees, especially during economic downturns.
It is important to note that the table also includes figures for 2024, allowing for a year-over-year comparison. In this case, the 'International – Finance leases' amount decreased from $55 in 2023 to an unspecified amount in 2024, indicated by "· · ·" in the provided table. This decrease could be due to various factors, such as changes in leasing strategies, vehicle acquisitions, or debt management practices. A potential franchisee should inquire about the reasons behind these changes to better assess the financial strategies and stability of Budget.