Do you want to open a car hire business by buying National Car Rental franchise? If YES, here is how much it cost to open a National Car Rental franchise.
As the world’s largest car rental provider, Enterprise Holdings owns 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.
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 2019, Enterprise Holdings’ brands were recognized by travel agents and corporate travel buyers for exceptional client satisfaction and communication. Enterprise Rent-A-Car received 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.
However, if you have read any of the National Car Rental reviews online, it is obvious that things are pretty hit or miss with this rental chain. Most of the National car rental review testimonials you will find on the Internet today talk about how deep the vehicle line-up is when you are looking to rent a car through them. You will be able to find compact vehicles, midsize sedans, luxury automobiles, and even SUVs and trucks.
If there is one thing about the National car rental service, it is that they know how to pick their rental car fleets. But then, if you run into the wrong National car rental franchise, it could spell a handful of problems and hassles. This is unlike anything else you have ever experienced with a business.
It includes losing reservations, vehicles that are in poor shape, sky high prices, and invisible charges without reason. Also, a number of other major issues have made National Car rental franchise a bit of a target when it comes to Better Business Bureau and transparency.
If you are considering acquiring a National Car Rental franchise, below are the costs of starting and running the franchise;
- Liquid Capital: $60,000
- Royalty Fee: 6%
How to Get and Open a National Car Rental Franchise
National Car Rental is an international car rental company with more than 2,000 locations. National Car Rental is based in Clayton, Missouri, and is owned by Enterprise Holdings. Below are detailed steps on how to acquire a National Car Rental Franchise.
- Contact The Company for Initial Applications and FDDs
After you must have assessed your market and decided to acquire this franchise, visit the company website and fill out the preliminary questionnaires/application forms. The preliminary applications help the company screen and eliminate aspiring franchisees that won’t be a good fit.
It is 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 is a good chance that you can set up a meeting with the company’s representative and get a copy of the franchise disclosure document.
- Attend the Company’s Discovery Day
After you must have received the company’s federal disclosure agreement, you will have the opportunity to meet the management team personally during discovery day, which typically takes places at the company’s head office in Clayton, Missouri.
This is your chance to get to know more about the company and ask questions about anything that will affect the success of the business. Discovery day is a great chance to get to know the franchise and its management team. This is also an opportunity to learn more about the company culture and individual personalities of the people with whom you will 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.
- Acquire Adequate Financing
Note that you will need sufficient starting capital to cover your franchise fee and start-up costs, of course, but you also need working capital to get you through the first leg of your franchise journey. Here are some possible sources of capital:
- National 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
Note that the franchise 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.
- Acquire Business Licenses and Compliance Requirements
In the united states, most state and local governments require businesses to obtain various licenses and permits before they can do business in the area. These commonly include general business licenses, tax registrations, health permits, and occupational licenses. Failure to maintain all necessary licenses and permits can result in government fines.
The company 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. If you fail to submit a report on time, the state can terminate your corporation’s or LLC’s existence, leaving you exposed to the risks you incorporated to avoid.
- Establish or Improve Your Location, Attend Training, and Hire Employees
Although most franchisees are responsible for building or improving the space where they will operate, National Car Rental 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.
- Open Your Location
At this point, it is time to open your franchise to the public. This is another area where buying a franchise offers advantages over starting from 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.
National car rental is a major car rental company in the United States with franchises all throughout the country. They offer vehicles for short or long term rental agreements. National and their car rental services are pretty standard across the board.
The experience you get will depend almost entirely on the franchise agent you are working with. Aside the agents that are working with you– the kind of fleet that your particular location keeps at all times will dictate the success you achieve.
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