Do you want to start a car rental business by buying a franchise? If YES, here are current car rental franchise opportunities you can investigate and how much they may cost to open.

Car rental looks like a fairly simple business from the outside. You acquire vehicles, rent them to customers and collect daily or weekly rental fees.

But once you start looking at the numbers, you quickly discover that this is a very capital-intensive business.

Your biggest startup expense usually is not the franchise fee. It is the fleet.

If you need 20 rental vehicles and each one costs $25,000, you already have $500,000 tied up in vehicles before paying for your premises, insurance, software, staff, signage or working capital.

That is why some car rental franchises have franchise fees of only $10,000 or $25,000 but require total investments running into hundreds of thousands or even millions of dollars.

You should therefore pay more attention to Item 7 of the Franchise Disclosure Document than to the advertised franchise fee. Here are some of the current opportunities worth researching.

Best Car Rental Franchise Opportunities and Their Cost

1. Hertz

Hertz remains one of the most recognizable vehicle-rental brands in the world and is once again putting greater emphasis on expanding its franchise network. The company operates both corporate and franchised locations.

Hertz franchisees receive access to the brand, reservations network, technology, marketing programs and other operating support. This is not a low-cost franchise.

Hertz’s current franchise disclosure information estimates that establishing a new U.S. Hertz rental business can require approximately:

• Total initial investment: $879,300 – $16,249,000
• Initial franchise fee: Starts around $25,000 and can increase depending on the territory and structure
• Royalty: Generally varies according to the type of location and gross rental receipts

The extraordinary difference between the low and high end is mainly explained by fleet size.

Current estimates contemplate anything from a relatively small fleet to hundreds of vehicles. Real estate and improvements can also add substantial additional costs.

Hertz currently expects prospective franchisees to demonstrate substantial financial strength.

The company has historically looked for approximately $500,000 or more in net worth and at least $150,000 in liquid capital, although your actual requirements will depend on the market and proposed fleet.

Best suited for: Well-capitalized entrepreneurs or established rental operators who want a major international brand.

2. U-Save Car & Truck Rental

U-Save has operated in the vehicle-rental industry for decades and continues to offer franchises in the United States. The brand serves both neighborhood and airport customers and can rent:

• Cars
• Vans
• Light-duty trucks
• Specialty vehicles

Current franchise disclosure information puts the estimated cost at approximately:

• Total initial investment: $167,900 – $1,547,250
• Initial franchise fee: Starts around $10,000 but can be substantially higher for larger territories and airport markets
• Royalty: Approximately 6% of gross revenue, subject to minimums
• Marketing contribution: Approximately 2%, subject to minimums

The current investment estimate assumes a substantial opening vehicle fleet, which explains why total startup costs can be much larger than the initial franchise fee suggests.

This can work particularly well for someone who understands their local rental market and wants to serve replacement-car customers, leisure renters, local businesses and travelers.

Best suited for: Entrepreneurs who want a traditional neighborhood or airport car-and-truck rental operation without paying for one of the largest global brands.

3. Green Motion Car and Van Rental

Green Motion differentiates itself through its environmental positioning. The company was originally developed around low-emission and fuel-efficient rental vehicles and has expanded into a large international franchise network.

It now operates through hundreds of locations around the world. Green Motion also has a U.S. franchise structure. Current U.S. disclosure figures indicate approximately:

• Total initial investment: $167,900 – $1,547,250
• Initial franchise fee: Approximately $10,000
• Royalty: Greater of approximately 6% of gross revenue or applicable monthly minimum
• Marketing fund: Greater of approximately 2% of gross revenue or applicable minimum

The typical model requires a fleet of rental vehicles along with premises, signage, insurance, computer systems and sufficient working capital.

One attraction of Green Motion is its international reservation and broker network. That can be particularly valuable in markets dependent on tourism.

However, the U.S. franchise network is still considerably smaller than the brand’s international operation.

Best suited for: Entrepreneurs who like the idea of building a rental business around environmentally conscious branding and international travel customers.

4. NextCar

NextCar is an increasingly interesting option for independent rental operators and automobile dealers.

Its franchise model can work as a standalone rental location or alongside another automotive business. A car dealership, for example, may already have:

• Parking
• Staff
• Vehicle-maintenance facilities
• Customer traffic
• Relationships with lenders

Adding rentals can create another use for that infrastructure. Current franchise information estimates:

• Total initial investment: $315,384 – $1,592,533
• Initial franchise fee: Approximately $25,000 – $125,000 depending on territory type
• Royalty: Approximately 4% of gross revenue, subject to minimums
• Marketing fee: Approximately 1% of gross revenue, subject to minimums

NextCar offers several territory models, including neighborhood locations and airport markets.

The majority of startup capital goes into acquiring rental vehicles. Current franchise estimates contemplate fleets that can range from roughly 10 to 50 vehicles depending on the operation.

Best suited for: Existing automobile dealers or entrepreneurs who want to build a neighborhood or airport rental operation.

5. Priceless Car & Truck Rental

Priceless is another established car and truck rental franchise. The company has traditionally positioned itself as an alternative to the biggest airport-focused rental brands.

It offers franchisees reservation technology, fleet assistance, marketing, training and access to vehicle-related programs.

Current franchise disclosure information indicates that a Priceless location may require approximately:

• Total initial investment: Roughly $214,000 – $1.8 million or more depending on territory and fleet
• Initial franchise fee: Approximately $25,000 – $125,000 depending on location type
• Royalty: Approximately 4% of gross revenue, subject to minimums
• Marketing fee: Approximately 1% of gross revenue, subject to minimums

Priceless supports several types of locations, including single-point, neighborhood-service-area and airport operations. The company also promotes its franchise to existing car dealers.

That can make sense because dealers may already have the staff, facilities and access to vehicles necessary to add a rental department.

Best suited for: Independent car dealers and entrepreneurs seeking a smaller national rental brand.

6. Rent-A-Wreck

Despite the unusual name, Rent-A-Wreck has been operating in the value-focused rental market for decades.

The concept originally became known for renting dependable used vehicles rather than competing exclusively with national brands offering large fleets of nearly new cars.

Its modern franchise system includes vehicle rentals, leases and other mobility services. Current disclosure information estimates:

• Total initial investment: Approximately $189,550 – $2,592,533
• Initial franchise fee: Approximately $25,000 – $125,000 depending on territory
• Royalty: Greater of approximately 4% of gross revenue or an applicable monthly minimum

Once again, fleet cost explains most of the enormous range.

A small neighborhood operation may require far fewer vehicles than a significant airport market.

One potential advantage is that Rent-A-Wreck’s value-oriented positioning can allow an operator to compete for local renters who are more concerned about price and transportation than receiving the newest vehicle.

Best suited for: Entrepreneurs targeting neighborhood, insurance-replacement and value-conscious rental customers.

7. EagleRider

EagleRider is not a conventional automobile-rental franchise. It specializes in motorcycles and motorcycle tourism.

The company rents motorcycles, ATVs, scooters and other recreational vehicles and also organizes guided and self-guided tours.

That makes EagleRider particularly relevant in destinations where people travel specifically for scenic rides, motorcycle events and adventure tourism.

Current franchise disclosure information estimates:

• Total initial investment: Approximately $73,500 – $317,000
• Initial franchise fee: Approximately $30,000
• Royalty: Approximately 10% of gross rental revenue and 5% of certain retail revenue, subject to minimums

EagleRider can be significantly less expensive than a full automobile rental franchise because you may not need a fleet of 20 or 50 cars. But this is also a much more specialized market. Location is critical.

A motorcycle rental company in a major tourism destination or close to popular scenic riding routes has a very different opportunity from one operating in a market with little motorcycle tourism.

Best suited for: Motorcycle enthusiasts and entrepreneurs in strong tourism or adventure-travel markets.

8. Right Cars

Right Cars operates an international vehicle-rental franchise network in more than 30 countries and continues to actively recruit franchise partners. The company provides franchisees with:

• Branding
• Reservation technology
• Online marketing
• Fleet-management support
• Training
• Access to international booking channels

Unlike the U.S. franchises above, Right Cars does not currently publish one standard investment figure applicable to every market. The company says startup costs depend on:

• Your country
• Airport or downtown location
• Fleet size
• Existing rental operation
• Territory

That means you need to request a specific proposal for the city or airport you want to develop.

Right Cars can be particularly interesting if you already operate a local rental company and want to rebrand it under an international reservation network.

Best suited for: Existing rental operators or investors looking for international airport territories.

Car Rental Franchise Cost Comparison

Why Does a Car Rental Franchise Cost So Much?

The vehicles are the main reason. Consider a relatively small fleet of 20 cars at an average acquisition cost of $25,000. That represents:

$500,000 worth of vehicles.

Even when vehicles are financed or leased rather than purchased outright, you still have significant monthly financial obligations. Then add:

• Commercial vehicle insurance
• Parking or rental lot
• Office rent
• Employees
• Vehicle registration
• Cleaning
• Maintenance and tires
• Reservation software
• Payment processing
• Airport concession fees where applicable
• Damage and accident administration
• Marketing
• Working capital

This is why a $10,000 franchise fee can easily lead to a $500,000 or $1 million startup.

Airport Car Rental Vs. Neighborhood Car Rental

Do not assume the airport is automatically the best place to operate. Airport rental can give you access to large numbers of travelers. But airport locations can also bring:

• Higher franchise territory fees
• Airport concession fees
• Facility charges
• Shuttle requirements
• More intense competition
• Higher fleet requirements

A neighborhood location can target:

• Insurance-replacement rentals
• Local residents whose vehicles are being repaired
• Business customers
• Long-term renters
• Local tourists
• Dealership customers

The best model depends on your market.

What Should You Check Before Buying a Car Rental Franchise?

Before committing yourself, investigate more than the franchise fee. Ask how many vehicles the franchisor expects you to open with.

Find out whether you can buy used fleet vehicles or must follow particular age and mileage requirements. Also investigate:

• Fleet financing
• Insurance costs
• Vehicle depreciation
• Vehicle utilization
• Average rental rate
• Reservation fees
• OTA commissions
• Airport fees
• Royalty minimums
• Marketing contributions
• Technology fees
• Required working capital

One of the most important numbers in car rental is fleet utilization. A car sitting in your parking lot still costs you money.

Your vehicle payment, insurance, depreciation and parking expenses continue whether the car earns rental revenue that day or not.

That is why buying too many vehicles too quickly can be just as dangerous as having too few.