When a Transferring Licensee intends to transfer, what written notice and documentation must be submitted to Budget?

According to Budget's 2025 Franchise Disclosure Document, a Transferring Licensee must submit written notice of their intent to transfer to Budget. This notice must be accompanied by specific documents and information for Budget's review. These documents and information must be certified as true, correct, and complete by the Transferee, its shareholders, members, or partners.

The required documents include the names, addresses, and phone numbers of the Transferee, its shareholders, members, partners, officers, directors, and operational management personnel related to the Rental Business. Financial statements of the Transferee, its shareholders, members, or partners for the past three years, along with an opening balance sheet for the Rental Business, must also be submitted. The business experience of the Transferee, its shareholders, members, partners, and management team for the past five years, with a focus on rent-a-car experience, is also required.

Further, the bankruptcy and litigation history of the Transferee, its shareholders, and management team for the past five years must be provided. A copy of the definitive buy/sell agreement and any other agreements related to the transfer, including facility, equipment, and concession agreements, schedules of assets being sold, employment/consulting agreements, asset/vehicle purchase agreements, and non-competition agreements, are necessary. The buy/sell agreement must be signed by both the Transferring Licensee and the proposed Transferee and must state that the sale is contingent upon Budget's written consent. Verification from banks or financial institutions that the Transferee has secured lines of credit for fleet financing and verification from insurance companies that the Transferee has secured fleet liability insurance are also required. Finally, a copy of the forecast or pro forma financial statements completed by the Transferee on the Rental Business, which was submitted to fleet financing or other financing sources, and pictures of the locations subject to the sale, including interior and exterior trade dress and counter, must be submitted.

Budget requires all this documentation to ensure that the proposed transferee meets their standards. This allows Budget to protect the brand and ensure the continued success of the network. The review process by Budget will take at least 90 days following the submission of all required documents.