What you should know about car rental franchises


Some people choose to start an independent business, while others prefer buying a franchise. Buying a car rental franchise has several advantages. It provides flexibility in investment and time, and you don’t have to worry about building the brand image. You receive a lot of advertising and corporate support. However, to enjoy those benefits, you have to be sure the franchise is successful and enjoys a good reputation among the customers. Suppose there is an Avis car rental franchise for sale, and you are interested in exploring the opportunity it offers. In that case, you must be aware of specific details and fulfill certain requirements to ensure a smooth-running business operation. Here’s some information you will find helpful.

What is a car rental business?

A car rental business refers to a business in which a car rental company rents a vehicle to a customer for a specific time, depending on the customer’s requirements. Usually, such companies have several branches across cities or countries. The terms and conditions, payment methods, and types of vehicles that a company rents vary from one company to another. A car rental franchise is a business arrangement where you work for the parent company (or the franchisor), renting cars to customers across various locations. The day-to-day management and sales process usually varies from one company to another and is generally decided by the franchisor, with some flexibility. Before becoming a car rental franchisee, the franchisor would likely offer commercial terms, draw up a contract, assist you with the system’s set-up, and allow you to run your branch after the required training.

Difference between franchise and licensee

Some car business companies offer a licensing opportunity rather than allowing you to become a franchise. How are they different from each other? Franchising refers to a business arrangement where the franchisor (the business owner) allows the franchisee (someone who works for the franchisor) to set up a branch with its brand’s name in exchange for a fee. In contrast, in a licensing agreement, the owner allows a party to use specific registered trademarks of the brand in exchange for a pre-arranged royalty fee. You must be aware of what type of arrangement you are getting into before starting a business.

What are the advantages of car franchises?

Buying a car rental franchise comes with plenty of advantages, and here are some you should know.

You don’t have to worry about brand image

If you become a franchisee for a successful car rental company, you won’t have to worry about building a brand image or promoting your business at the ground level. Since the brand will have a loyal customer base who will know about the company, its standard, practices, and expectations, you will save a lot of time and money.

Help from the main branch

If you are buying and operating a franchise for the first time, you will require help from the main branch to understand the daily operations and processes of the car rental business. You must understand what cars to rent first, when to rent them, how long to hold, and other such things, for all of which the brand’s corporate branch will provide assistance. Some franchisors will also offer additional help like rate management, fleet insurance, and even legal assistance.

A steady flow of customers

Another advantage of becoming a car rental franchisee is receiving a steady flow of customers. Besides customers visiting your retail store directly and making reservations from the company’s corporate website, they will use local SEO, email marketing, and online travel agencies to find out about you. Usually, car rental franchise systems have a reservation fee for reservations through their main website.

Cost of becoming a franchisee

The cost of becoming a franchisee will depend on one franchise to another. In most cases, it would cost you at least 20,000 USD$, with a liquid capital of about 170,000 USD$ and an initial investment between 166,700 USD$ and 451,000 USD$.

Things you must know as a franchisee

While you will enjoy many benefits as a franchisee of a successful car rental brand, you must also fulfill specific requirements to ensure the smooth running of the business. For instance, you should pay attention to the specifics like outside signage rules, counter size, uniforms, and wall colors. You should also maintain accurate and updated records to avoid confrontations with the franchisor and understand the prescribed method of handling a customer’s complaints. The customer should not have to contact the headquarters to resolve their issue since that would reflect poorly on the company. You should also know the insurance rules, reimbursement options, and other details related to the car rental franchise.

Before buying an Avis car rental franchise for sale or any other car franchise, these are some things you must take into consideration. Buying a car rental franchise has several advantages, from regular customers to an in-built brand image.

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