HERTZ Franchise Startup Cost, Profit Margin, Revenue and Locations
Hertz is considered to be the biggest airport car rental company and also the leading rental brand in the United States as well close to 85 countries in Europe. The company operates as franchises and also self managed brand and has been operating car rentals services for more than 90 years. The products and services rendered by the company include NeverLost. #1 Club Gold, SIRUS Satellite Radio, Fun and Green Collection and a whole lot of other patented services. So how much is a Hertz franchise?
Customers have the option to choose from a wide range of exotic cars and SUVs like Ferrari, Porsche, Lamborghini, Tesla, Aston Martin and others. And they have partnerships with airports, hotels, railroad companies and so many others.
The company was started in the year 1918 in Chicago. It was founded by Walter Jacobs. The business was sold in 1923 to Hertz John. Hertz changed the name of the company and sold his previous company to General Motors, which he later purchased back from the company.
The company’s ownership has changed hands so many times in its lifetime and then in 1987, the company was sold to Park Ridge Corporation which is an affiliate of Ford Company.
IS HERTZ A FRANCHISE?
The Hertz Company has continued to grow and there are opportunities opened to the public as well as interested individuals. The company sells franchises and as a franchisee with Hertz, you will be joining a business that is the leader in the industry.
THE HERTZ FRANCHISE OFFER
When you purchase a Hertz franchise, you will be given the license to operate a business that is involved in car rentals under the company’s brand name. Once you are approved by the franchisor, you will be given the right to run your business under the Hertz Brand within a specified locality as stated in the franchise agreement.
HOW MUCH DOES A HERTZ FRANCHISE COST?
Just like every other franchise, buying into a Hertz franchise will entail some cost. for an individual to become a franchise owner with the company, they will be expected to have a net worth of about $500,000 as well as a liquid capital of about $150,000
HERTZ FRANCHISE FEE
As a new franchisee with Hertz, you will be required to make an initial franchise fee payment, which will grant you the access to operate under the company’s brand and identities. The fee is non refundable and renewable after a set period of time. The Hertz franchise fee is within the range of $25,000 and $50,000.
New franchisees with Hertz will also be required to make an additional ongoing royalty fee of about 7% and an ad royalty of 3% on a monthly basis.
HOW MUCH DOES A HERTZ FRANCHISE MAKE?
Hertz franchise owners make quite a lot of money when they enter into the car rental business under the company’s umbrella. The average income although cannot be ascertained as the company does not make it public. But the actual figure that a franchise owner with the company will likely make is revealed in the FDD, which the franchisee will have access to when they have been considered for a franchise opportunity.
It is also important to note that the actual earning that can be realised will depend on the location of the franchisee, the business strength and other factors that determine the success of a business.
WHO QUALIFIES FOR A HERTZ FRANCHISE?
You don’t need any special experience to qualify for the company’s franchise opportunity. As long as you are able to meet up with the financial requirement to establish a Hertz franchise unit. The company will be responsible for the training of all new franchisees so you don’t need to have a prior experience on car rental services.
Once the franchisee has been accepted into the company’s fleet of business owners, they will be provided with all the necessary assistance and support that is needed to develop their business. Franchisees will also be provided with an exclusive territory in which they can operate in.
New franchisees will be made to attend an onboard training session at the company’s head office. There will also be an ongoing support for all new franchisees: they will have access to the company’s integrated reservation system.
TERMS OF AGREEMENT
When you buy into a franchise with the company, you will be given the license to operate under the company’s identity for a period of 5 years. Once this period elapses, there will be an opportunity to renew if you are able to meet up with the company’s term and conditions.
Franchisees will not have access to any form of funding with the company, either directly or indirectly. They will be expected to make an external funding available for themselves to develop their Hertz franchise.
HOW TO BUY A HERTZ FRANCHISE
The information in this article has discussed intensely what it takes to buy a Hertz franchise. For additional details, you can held to the company’s website and submit your application.
Once this is reviewed and your application is considered, the company will assign a franchise consultant who will help you in developing your franchise unit.