What was the reported value of Budget's buildings and leasehold improvements in 2023?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------|--------------------|--------|------| | | 2024 | | 2023 | | Prepaid expenses | $ | 239 $ | 239 | | Sales and use taxes | | 187 236 | 192 253 | | Other Other current assets | $ | 662 $ | 684 | | Other current assets | | | |
11. Property and Equipment, net
Property and equipment, net consisted of:
| 2024 | 2023 | |
|---|---|---|
| Land | $ 61 | $ 61 |
| Buildings and leasehold improvements | 616 | 57 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the value of buildings and leasehold improvements in 2023 was $574 million. This figure represents the company's investment in its physical infrastructure, including buildings and any improvements made to leased properties. These assets are essential for Budget's operations, providing locations for rental services and related activities.
For a prospective franchisee, understanding the value and depreciation of these assets is important. The FDD also mentions that buildings have a useful life of 30 years, which is the period over which they are depreciated. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. This depreciation and amortization affect Budget's overall financial health and can influence decisions related to property management and investment.
The table in the FDD provides a snapshot of Budget's financial position at the end of 2023 and 2024, offering insight into the company's asset management and capital allocation. Reviewing these figures helps potential franchisees assess the stability and long-term planning of Budget, which can be a key factor in their decision to invest in a franchise.