What verification must a proposed Budget Transferee provide from banks or financial institutions regarding fleet financing?

According to Budget's 2025 Franchise Disclosure Document, a transferring licensee must submit written notice of their intent to transfer the license to Budget. As part of this notice, the proposed transferee must provide verification from banks or other financial institutions that they have secured lines of credit for fleet financing in amounts necessary to operate the rental business. This documentation must be certified as true, correct, and complete by the transferee, its shareholders, members, or partners.

This requirement ensures that the proposed transferee has the financial capacity to manage the fleet, which is a critical asset for a car rental business like Budget. Without adequate fleet financing, the transferee may struggle to maintain a sufficient number of vehicles, impacting service quality and revenue generation.

Budget also requires a copy of the forecast or pro forma financial statements completed by the proposed Transferee on the Rental Business, which was submitted to fleet financing or other financing sources. This allows Budget to assess the financial planning and projections of the transferee, further evaluating their ability to manage the business effectively.

Overall, these requirements aim to protect the Budget brand and ensure that new franchisees have the financial stability and planning necessary to succeed. Prospective transferees should be prepared to provide comprehensive financial documentation and demonstrate their ability to secure and manage fleet financing.