Car Rental Franchise Opportunities for 2024

Introduction

The car rental industry encompasses businesses that rent out cars to their clients for an extended period of time, from days to weeks on end. It also includes businesses that lease cars out to their customers, but these tend to be for a much longer period of time, at least a year or more. The most prominent and well-known player in this industry is ZipCar, which is owned by Avis Budget Group LLC. Therefore, there are very few small-scale businesses within this industry. The car rental market is currently valued at $23 billion, with almost 20,000 operating businesses. The car rental industry is especially popular with people who need to drive to the airport, drive in the place they are vacationing, or with college students in rural areas who do not have cars of their own. In this article, we will talk about the 5 best car rental franchise opportunities ranked by net unit growth.

Key Travel & Hospitality Industry Numbers

• Average Travel & Hospitality Franchise Royalty Fee: 5.2%
• Average Travel & Hospitality Franchise Marketing Fee: 2.3%
• Average Travel & Hospitality Franchise Initial Investment: $3.8M
• SBA Loan Paid-in-Full Rate: 35.4%
• SBA Loan Charged Off Rate: 2.7%
• SBA Loan Success Ratio: 13:1

5 Car Rental Franchise Opportunities

Hertz

• Total U.S. Locations: 3,715
• Net Unit Growth (3 years): 102
• Initial Investment: $879K-$15.84M
• Royalty Fees: 8%

Hertz is a car rental franchise that offers both its customers and franchisees the best services possible. This car rental franchise has multiple locations spread across the United States. As a franchisee, they will also help you with site selection and real estate negotiations to support you every step of the way with interior design, marketing teams, tech teams, and most importantly the employees.

NextCar

• Total U.S. Locations: 28
• Net Unit Growth (3 years): 6
• Initial Investment: $563K-$1.28M
• Royalty Fees: 4%

NextCar is a car rental franchise that offers one of the best rental services. They rent cars, vans, trucks, and even boats. This rental car franchise will offer you a business plan that ensures your success. As a franchisee, you will be provided with several services including marketing, training, and more.

DriverSeat

• Total U.S. Locations: 6
• Net Unit Growth (3 years): 5
• Initial Investment: $53K-$89K
• Royalty Fees: To learn more check the FDD

DriverSeat is a car rental franchise that offers its customers the best possible services such as designated driver services, special events chauffeuring, assisted transport, and car relocation services. In addition to deals that can be customized to fit a customer’s need. They will also offer their franchisees ongoing training and marketing.

Byrider

• Total U.S. Locations: 131
• Net Unit Growth (3 years): -4
• Initial Investment: $947K-$1.58M
• Royalty Fees: To learn more check the FDD

Byrider is a rental car franchise that offers its customers services such as car repair and maintenance and has offers that are customized to the customer’s needs or pleases. This car rental franchise has numerous locations across the United States. They also provide you with a trained team to help your business and maintain their excellent customer service.

Avis

• Total U.S. Locations: 1,860
• Net Unit Growth (3 years): -8
• Initial Investment: $606K-$1.57M
• Royalty Fees: 8%

Avis is a rental car franchise that offers its franchisees training, ongoing marketing support, and a business model that will ensure the franchisee’s success. In addition to a rental car period of 180 days to its customers with an insurance driver’s license and social ID, and a fine for or if there is collateral damages to the rented car.

Conclusion

In conclusion, the car rental industry is a $23 billion industry with very few small-scale businesses in the industry. It could be a great place for you to start franchising and start your entrepreneurial career. In this article, we discussed the 5 best car rental franchise opportunities ranked by net unit growth. You should take them into consideration as you decide which car rental franchise you want to invest in.