Are there any specific conditions under which the Consolidated Statements of Cash Flows for Budget would be restated?
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, Exhibit G includes the Avis Budget Group, Inc.'s audited consolidated financial statements. These statements encompass balance sheets as of December 31, 2024, and 2023, along with statements of operations, stockholders' equity, comprehensive income, and cash flows for the years ending December 31, 2024, 2023, and 2022. The exhibit also includes related notes. These consolidated statements and notes provide an overview of the financial health and performance of Avis Budget Group, Inc., which guarantees Budget's obligations under its license agreements.
While the FDD references the Consolidated Statements of Cash Flows, it does not explicitly detail the specific conditions that would necessitate a restatement of these statements. Restatements typically occur when there are material errors or irregularities in the original financial statements that need correction to ensure accuracy and compliance with accounting standards.
As the FDD does not provide specific conditions for restatement, prospective Budget franchisees should directly inquire with the franchisor about the policies and procedures governing the restatement of financial statements. Understanding these conditions is crucial for assessing the reliability and accuracy of the financial information presented, which is vital for making informed investment decisions.