Hertz Franchise

Discover the Hertz Franchise Opportunity

Since its inception in 1925, Hertz has established itself as one of the foremost vehicle rental franchises globally. As a potential franchisee, you have the chance to join a reputable brand known for its extensive network and excellent services. Below is an in-depth overview of the Hertz franchise opportunity, including costs, fees, and other essential details.

Hertz Franchise at a Glance

• Year Business Began: 1925
• Franchising Since: 1925
• Headquarters: Estero, Florida
• Number of Units: 11,600 (across all brands of Hertz Global Holdings, Inc.)

Franchise Description

Hertz System, Inc., a wholly-owned subsidiary of The Hertz Corporation, acts as the franchisor. The ultimate parent company, Hertz Global Holdings, Inc., oversees multiple brands including Hertz, Dollar, Thrifty, and Firefly. The core business involves the rental of vehicles without a driver, catering to both transient rental and insurance/mechanical replacement needs, all operated under the renowned "HERTZ" brand and other proprietary marks.

Training Overview

Hertz provides a comprehensive training program to ensure franchisees are well-prepared for success. Key highlights include:

• Initial training programs for franchisees, managers, and key employees.
• Potential remedial training as deemed necessary by the franchisor.
• Optional training programs offered from time to time.
• Mandatory internal training programs for all employees.

All training expenses are the responsibility of the franchisee, including travel and living costs.

Territory Details

Hertz grants non-exclusive geographic territories to franchisees. These territories vary and are defined in the Franchise Agreement by city or political subdivisions. Note that franchisees may face competition from other franchised outlets, company-owned units, or competitive brands controlled by Hertz.

Obligations and Restrictions

Franchisees must:

• Devote significant time and effort to operate and manage the business.
• Employ a manager who completes the required training, has relevant experience, and devotes full-time to the business.
• Rent only vehicles that meet Hertz's standards and specifications.
• Comply with Hertz's operational standards, specifications, and procedures.

Investment & Financial Information

Estimated Initial Investment

• Initial License Fee: $25,000 - $100,000
• Training Expenses: $3,000
• Passenger Cars: $750,000 - $15,000,000
• Courtesy Vehicles (per location): $55,000 - $350,000
• Equipment and Supplies: $5,000 - $20,000
• Insurance: $5,000 - $40,000
• Professional Fees: $3,000 - $10,000
• Computer Systems, Hardware and Software: $11,500 - $250,000
• Optional Software: $1,500 - $15,000
• Business License: $100 - $500
• Miscellaneous Installation Fees: $200 - $500
• Additional Funds (3 months): $20,000 - $50,000
• Total Estimated Investment (excluding real estate & improvements): $879,300 - $15,839,000

Additional Fees

Franchisees should anticipate the following potential fees and charges:

• Franchise Fee: 7% to 9% of gross receipts.
• Reservation Charges: $3.84 to $6.30 per passenger car reservation.
• Rate Management Services: $100 to $6,000 per location per month.
• Travel Industry Commissions: 0-30% of gross rental charges.

Many other potential costs and fees apply, including charges for insurance, travel vouchers, EDI costs, reservation assignment fees, and more. It is crucial for potential franchisees to review the full Franchise Disclosure Document (FDD) for a comprehensive understanding.

Term and Renewal

The initial franchise term, renewal conditions, and any related fees will be specified in the Franchise Agreement.

Financial Assistance

Hertz does not offer direct or indirect financing nor will it guarantee a franchisee's note, lease, or obligations.

Key Takeaways

• Join a well-established and globally recognized vehicle rental brand.
• Comprehensive training and support provided by Hertz.
• Non-exclusive territories with the potential for market competition.
• Significant initial investment but with a wide range of support services and proven business model.

Interested in learning more? Download the full Franchise Disclosure Document (FDD) or fill out the free information request form to get started today!