What is the specific day and month used as the 'as of' date for Budget's financial statements?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit G includes the audited consolidated balance sheets of Avis Budget Group, Inc. as of December 31, 2024 and 2023, and the related consolidated statements of operations, stockholders' equity, comprehensive income and cash flows for the years ended December 31, 2024, 2023, and 2022 and the related notes of Avis Budget Group, Inc. Avis Budget Group, Inc. guarantees our performance of our obligations under the Budget License Agreements we enter into. The instrument of guaranty is included in Exhibit G. We file state specific guarantees of performance with the appropriate agencies in the states where our licenses are registered to be offered and sold.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the audited consolidated balance sheets of Avis Budget Group, Inc., which guarantees Budget's obligations, are as of December 31, 2024 and 2023. This means the financial position of the company is reflected up to this date.
For a prospective franchisee, this is important because it provides a snapshot of the company's financial health at the end of the stated years. Reviewing these balance sheets can help in assessing the company's assets, liabilities, and equity, offering insights into its stability and ability to support its franchisees.
It is common practice for franchisors to include audited financial statements in their FDDs, typically with a year-end 'as of' date. Franchisees should carefully examine these statements and compare them to previous years to identify any trends or potential issues. Consulting with a financial advisor is recommended to fully understand the implications of these financial statements.