Hertz Franchise FDD, Profits, Costs & Fees (2024)
Hertz, established in 1918 in Chicago, Illinois, by Walter L. Jacobs, is a prominent name in the car rental industry. Initially operating with a modest fleet of Ford Model Ts, the company has grown into a global leader in vehicle rentals. Today, Hertz’s headquarters are located in Estero, Florida.
The company began franchising in 1925, allowing it to expand its reach and offer consistent services worldwide. Hertz provides a diverse range of rental vehicles, including economy cars, luxury models, SUVs, and trucks, catering to both leisure and business travelers.
Innovations such as the Hertz Gold Plus Rewards loyalty program and the introduction of the “NeverLost” GPS system have set Hertz apart from its competitors.
As of recent reports, Hertz operates approximately 12,000 corporate and franchisee locations across 160 countries, making it one of the largest car rental networks globally.
In the United States, Hertz continues to offer franchising opportunities, inviting entrepreneurs to join its extensive network and benefit from its established brand and operational support.
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Initial Investment
How much does it cost to start a Hertz franchise? It costs on average between $879,000 – $15,839,000 to start a Hertz franchised facility.
This includes costs for acquiring a vehicle fleet, setting up rental facilities, obtaining necessary equipment, and covering initial operating expenses. The exact amount depends on various factors, including the size and type of rental operation, the location, and whether the franchisee chooses to lease or purchase the property and vehicles.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $25,000 to $100,000 |
| Training Expenses | $3,000 |
| Passenger Cars | $750,000 to $15,000,000 |
| Courtesy Vehicles | $55,000 to $350,000 per location |
| Equipment and Supplies | $5,000 to $20,000 |
| Insurance | $5,000 to $40,000 |
| Real Estate & Improvements | As Required |
| Professional Fees | $3,000 to $10,000 |
| Computer System, Hardware and Software | $11,500 to $250,000 |
| Optional Software | $1,500 to $15,000 |
| Business License | $100 to $500 |
| Miscellaneous Installation Fees | $200 to $500 |
| Additional Funds – 3 months | $20,000 to $50,000 |
| Total (excluding Real Estate & Improvements) | $879,300 to $15,839,000 |
Competitors
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Hertz Franchise Disclosure Document
Frequently Asked Questions
How many Hertz locations are there?
As of the latest available data, Hertz operates approximately 12,000 locations worldwide, encompassing both company-owned and franchise-operated branches. This extensive network spans across 160 countries, solidifying Hertz’s position as a leading global car rental provider.
What is the total investment required to open a Hertz franchise?
The total investment required to open a Hertz franchise ranges from $879,000 to $15,839,000.
What are the ongoing fees for a Hertz franchise?
Operating a Hertz franchisees pay a royalty fee of 8% of monthly sales, compensating for the use of Hertz’s brand and support systems. Marketing fees can vary; some agreements may not include a standard marketing fee, while others might stipulate an advertising fee of up to 2%.
What are the financial requirements to become a Hertz franchisee?
To become a Hertz franchisee, applicants are required to have a minimum net worth of $500,000 and liquid capital of at least $150,000. These financial thresholds are essential due to the capital-intensive nature of the car rental industry, ensuring that franchisees possess the necessary resources to establish and sustain their operations effectively.
Who owns Hertz?
Hertz Global Holdings, Inc., the parent company of The Hertz Corporation, is a publicly traded entity listed on the Nasdaq Stock Market under the ticker symbol HTZ. As a public company, its ownership is distributed among various shareholders, including institutional investors, mutual funds, and individual investors.
Disclaimer
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