What does the term 'Permitted Nominee' mean in the context of the Second Amendment for Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Inc., as a Permitted Nominee, PV Holding Corp., as a Permitted Nominee, and Cendant Rental Car Funding (AESOP) LIC**, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, dated January 20, 2008). |
| Second Amendment, dated as of May 9, 2007, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quartx Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007, dated August 8, 2007). |
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| Form 10-Q for the guarterly genod ended June 30, 2007, Gated August 5, 2007. Third Amendment, dated as of August 16, 2013, among AESOP Leasing L.P., as Borrower, PV Holding Corp., as a Permitted Nominee, Quarts Fleet Management, Inc., as a Permitted Nominee, and Avis Budget Third Amendment, dated as of June 3, 2004 (Incomporated by reference to Exhibit 10,36(c) to the Company's Annual Report on Rental Car Funding (AESOP) LLC, as Lender, to the Second Amended and Restated Loan Agreement, dated as of June 3, 2004 (Incomporated by reference to Exhibit 10,36(c) to the Company's Annual Report on Port 10-K for the year ended December 31, 2013, dated February 20, 2014). |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the term "Permitted Nominee" appears in the context of several amendments to loan agreements. Specifically, PV Holding Corp. and Quartx Fleet Management, Inc. are identified as Permitted Nominees in the Second Amendment dated May 9, 2007, the Third Amendment dated August 16, 2013, and the Fourth Amendment dated July 28, 2022. These amendments relate to loan agreements involving AESOP Leasing L.P. as the borrower and Avis Budget Rental Car Funding (AESOP) LLC as the lender.
In this context, a "Permitted Nominee" likely refers to an entity that is allowed or authorized to act on behalf of or in place of another party in relation to the loan agreement. PV Holding Corp. and Quartx Fleet Management, Inc. are specifically named as such nominees in the amendments. This suggests that these entities have a defined role or responsibility within the financial structure and agreements of Budget, particularly concerning leasing and fleet management aspects.
For a prospective Budget franchisee, understanding the role of Permitted Nominees like PV Holding Corp. and Quartx Fleet Management, Inc. may not directly impact their day-to-day operations. However, it provides insight into the financial and legal relationships that Budget has with other entities. It indicates the complexity of Budget's corporate structure and how it manages its financial obligations and fleet operations. Franchisees might want to inquire further about how these relationships could indirectly affect them, especially in terms of fleet availability, leasing terms, or financial stability of the overall Budget system.