Is the SBA Addendum included as part of the Budget franchise agreement?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
If you obtain financing through the SBA, you must sign the SBA Addendum to Franchise Agreement, attached as Exhibit H-1.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, if a franchisee obtains financing through the Small Business Administration (SBA), they must sign the SBA Addendum to the Franchise Agreement. This addendum is included as Exhibit H-1 in the FDD.
This requirement is standard practice in the franchise industry when SBA financing is involved. The SBA Addendum ensures that the franchise agreement complies with SBA loan requirements, protecting both the franchisee and the lender.
Prospective Budget franchisees should carefully review Exhibit H-1 to understand their obligations and rights related to SBA financing. It is important to consult with legal and financial advisors to fully understand the implications of the SBA Addendum before signing any agreements.