Budget Rent A Car Franchise FDD, Profits & Costs (2025)
Budget Rent A Car has established itself as a globally recognized car rental brand, trusted for its affordable and dependable service. The company was founded in 1958 by Morris Mirkin in Los Angeles, California, starting out with just 10 cars designed to serve budget-minded travelers.
Two years later, in 1960, Mirkin teamed up with Jules Lederer to create Budget Rent A Car Corporation, which quickly expanded through franchising. Today, the brand is headquartered in Parsippany, New Jersey, and operates under the umbrella of Avis Budget Group.
Franchising officially began in 1960, fueling rapid growth across the United States and abroad. With its strategy of offering competitive rates and positioning many locations away from costly airport facilities, Budget built a strong reputation among value-oriented customers.
The company provides a full range of rental options, including cars, trucks, and vans, serving both leisure and corporate clients.
Initial Investment
How much does it cost to start a Budget Rent A Car franchise? It costs on average between $626,000 – $1,588,000 to start a Budget Rent A Car franchised center.
This includes expenses for facility setup, rental equipment, vehicle fleet inventory, and initial working capital. The total investment varies based on factors such as location, market size, and whether the franchisee decides to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial License Purchase Fee | $50,000 |
| Construction, remodeling, decorating, and leasehold improvements | $15,000 – $50,000 |
| Furniture, fixtures, other fixed assets, and equipment | $15,000 – $28,000 |
| Signage | $10,000 – $25,000 |
| 3 months’ rent and security deposits | $9,000 – $18,000 |
| Vehicle Insurance Premiums | $15,000 – $37,500 |
| Grand opening advertising and promotional costs | $2,000 – $5,000 |
| Office supplies | $500 – $2,000 |
| Miscellaneous opening costs | $1,000 – $3,000 |
| Automobiles | $450,000 – $1,290,000 plus interest |
| Travel and living expenses during training | $3,000 – $7,500 |
| Additional funds—three months | $55,000 – $72,400 |
| Total Estimated Initial Investment | $625,500 – $1,588,400 |
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Frequently Asked Questions
How many Budget Rent A Car locations are there?
As of the most data, Budget Rent A Car operates 1,197 company-owned locations and 177 franchise or licensee-operated sites.
What is the total investment required to open a Budget Rent A Car franchise?
The total investment required to open a Budget Rent A Car franchise ranges from $626,000 to $1,588,000.
What are the ongoing fees for a Budget Rent A Car franchise?
Budget Rent A Car franchisees are obligated to pay an ongoing royalty fee that typically falls in the range of 7.5% to 8% of gross revenue.
Who owns Budget Rent A Car?
Budget Rent A Car is owned by Avis Budget Group.
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