Does the table specify any conditions under which the financial results of Budget might be materially different?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Amounts in this table exclude derivatives issued by Avis Budget Rental Car Funding, as it is not consolidated by us; however, certain amounts related to the derivatives held by Avis Budget Rental Car Funding are included within accumulated other comprehensive income (loss), as discussed in Note 16 – Stockholders' Equity.
Included in other non-current abselts or other non-current liabilities.
Included in other current assets or other current liabilities.
Included in assets under vehicle programs or liabilities under vehicle programs or liabilities.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the financial statements include notes that describe conditions that could materially affect the company's financial results. Specifically, the amounts in the provided table exclude derivatives issued by Avis Budget Rental Car Funding because it is not consolidated. However, certain amounts related to these derivatives are included within accumulated other comprehensive income (loss), as detailed in Note 16 – Stockholders' Equity.
Additionally, the document indicates that certain items are included in different categories such as other non-current assets or liabilities, other current assets or liabilities, and assets or liabilities under vehicle programs. These classifications can impact how a franchisee interprets the financial health and performance of Budget.
For a prospective franchisee, understanding these conditions is crucial. The exclusion of derivatives and the specific categorization of assets and liabilities can significantly alter the perceived financial stability and profitability of Budget. It is important to review Note 16 and to seek clarification from Budget regarding these accounting treatments to fully understand their implications.