Do you want to start a car hire business by buying Enterprise Car Rental franchise? If YES, here is how much it cost to open a Enterprise Car Rental franchise.
Being the world’s largest car rental provider, Enterprise Holdings owns the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, and operates an integrated global network of more than 10,000 fully staffed neighbourhood and airport locations across 100 countries and territories.
Experts believe that Enterprise’s convenient locations and professional staff, as well as affordability and well-maintained vehicles are the reasons for the brands’ notable rankings over the years. Enterprise ranks near the top of the global travel industry based on annual revenues, ahead of many airlines and most cruise lines, hotels, tour operators and online travel agencies.
In 2018, Enterprise Holdings and its affiliate Enterprise Fleet Management that currently manages more than 2 million vehicles and employs 100,000 worldwide, accounted for $24.1 billion in revenue.
In 2019, Enterprise Holdings’ brands were also recognized by travel agents and corporate travel buyers for exceptional client satisfaction and communication. Enterprise Rent-A-Car bagged two awards from TravelAge West’s WAVE Awards, and National Car Rental earned top marks in Business Travel News magazine’s annual Car Rental Survey & Report.
According to reports, Enterprise has spent almost $2.4 billion on acquisitions and corporate-venture capital investments or commitments in the U.S., Canada, the U.K., France, Ireland, Spain, Brazil and China since 2008. These acquisitions include car rental companies, car share operations, vanpooling services, technology platforms and franchises.
Enterprise Holdings currently is ranked as one of America’s Largest Private Companies and if it were publicly traded, would rank on Fortune’s list of the 500 largest American public companies. So, if you are looking to acquire a car rental business; this is the franchise to consider.
If you are considering acquiring an Enterprise Car Rental franchise, below are the costs of buying an Enterprise Car Rental franchise;
- Liquid Capital: $60,000
- Royalty Fee: 6%
How to Get an Enterprise Car Rental Franchise
The business model of the company focuses on the customers and employees first, saying profits will follow after. To franchise with the company, make sure your values align with theirs! For more information about their global franchise opportunities please contact the following: Peter A. Smith Vice President of Global Franchising [email protected]
Meanwhile, just like other franchise opportunities (National Car Rental Franchise and Alamo Car rental Franchise) provided by Enterprise Holdings, below are the necessary steps for acquiring an Enterprise Car Rental Franchise.
- Contact Enterprise Holdings for Initial Applications and FDDs
When you must have analysed your market and decided to acquire this franchise, email the Vice President of Global Franchising, receive a feedback with a link to the application forms, fill out the preliminary questionnaires/application forms and submit immediately. The preliminary applications help the company screen and eliminate aspiring franchisees that won’t be a good fit.
It’s advisable that you fill out these initial forms completely and accurately to help the company better assess your qualifications. Once you meet the company’s initial requirements, there’s a good chance that you can set a meeting with the company’s representative and get a copy of the franchise disclosure document.
- Attend the Company’s Discovery Day
After receiving the company’s franchise disclosure agreement, you will have the opportunity to meet the management team personally during discovery day. This will be your chance to get to know more about the company and ask questions about anything that will affect the success of the business.
You will also learn about the company’s culture and individual personalities of the people with whom you’ll be working. Discovery day is the perfect time to ask questions and voice concerns that were not addressed in the franchise disclosure document (FDD). A discovery day’s typical agenda involves group presentations, one-on-one meetings and interviews, and visits to existing franchise locations.
- Seek Business Funding
Have it in mind you will need adequate starting capital to cover your franchise fee, start-up costs, and working capital to get you through the first leg of your franchise journey. Here are some possible sources of capital:
- Enterprise Car Rental— check Item 10 of its FDD.
- Family and acquaintances.
- Banks or finance companies.
- You may be eligible for an SBA-backed loan if you cannot otherwise qualify with a bank.
- Carefully Read and Sign the Franchise Agreement
This agreement is a binding contract between you and the company. As such, you should hire an attorney to review the agreement before you sign it. Make sure you understand the exact terms of the contract, including all your rights and obligations under the agreement.
- Get all Necessary Business Licenses and Permits
In the United States, most states and local governments require businesses to obtain licenses and permits before they can do business in the area. Once you fail to maintain all necessary licenses and permits, you may leave your business susceptible to government fines.
Enterprise Holding may also terminate your franchise if you do not stay compliant with licensing requirements. If you incorporate your franchise, you will also have to comply with your state’s corporate reporting requirements. Additionally, if you fail to submit a report on time, the state can terminate your corporation or LLC’s existence, leaving you exposed to the risks you incorporated to avoid.
- Build or Grow Your Location, Attend Training, and Hire Employees
Enterprise Car Rental just like other Enterprise Holding businesses will provide blueprints, custom fixtures, and signage, but you will need to hire a general contractor to build your space and prepare it for opening day. While you are building your physical location, you will want to start assembling your team.
Before opening day, the company will offer training to you and your employees. This training eases you into the culture of the company network and visions.
- Start Your Business
Now will be the time to open your franchise to the public. This is another area where buying a franchise offers advantages over starting from the scratch. The company will guide you through the process of opening your business and run an advertising blitz to help get the word out that you are now open.