AvisFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Avis franchise requires a total initial investment of $626K – $1.6M, including a $50K franchise fee and an ongoing 7.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $626K – $1.6M
- 40th pct Automotive
- Avg gross sales
- N/A
- 24th pct Automotive
- Royalty
- 7.5%
- 22nd pct Automotive
- Units
- 1,900
- 40th pct Automotive
- SBA default
- N/A
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1946. Systems this mature have refined operations and brand recognition.
21 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $626K – $1.6M including a $50K franchise fee, 7.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 40/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Avis Rent A Car System, LLC
- Parent company
- Avis Budget Group, Inc.
- Incorporated in
- DE
- HQ
- 379 Interpace Parkway, Parsippany, New Jersey 07054
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $12.0B
- vs $11.8B prior year
Overview
About
Avis franchisees operate rental car locations where they manage vehicle inventory, handle customer check-ins/check-outs, process reservations, manage counter sales, and oversee fleet maintenance. Day-to-day operations involve staff management, customer service, counter sales practices (which are currently under litigation scrutiny), and compliance with Avis brand standards while paying 7.5% of all gross revenue as royalties.
- CEO
- Joseph A. Ferraro
- Headquarters
- NJ
- FDD year
- 2025
- States available
- 22
FDD Item 7 · 2025 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial License Purchase Feenot refundable | $50K | $50K | |
| Construction, remodeling, decorating, and leasehold improvements | $15K | $50K | |
| Furniture, fixtures, other fixed assets, and equipment | $15K | $28K | |
| Signage | $10K | $25K | |
| 3 months' rent and security deposits | $9K | $18K | |
| Vehicle Insurance Premiums | $15K | $38K | |
| Grand opening advertising and promotional costs | $2K | $5K | |
| Office supplies | $500 | $2K | |
| Miscellaneous opening costs | $1K | $3K | |
| Automobiles | $450K | $1.3M | |
| Travel and living expenses during training (3 months) | $3K | $8K | |
| Additional funds - three months | $55K | $72K | |
| Total initial investment | $626K | $1.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $626K – $1.6M
- Better than avg vs category
- Liquid capital req'd
- $55K – $72K
- Better than avg vs category
- Franchise fee
- $45K – $50K
- Better than avg vs category
- Royalty
- 7.5%
- Gross Revenue · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Inventory (initial) | $500 – $2K |
| Total fee load | 7.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Automotive averages
How Avis Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,900
- Opened
- 20
- Last reporting year
- Closed
- 3
- Turnover rate
- 0.2%
- Company-owned
- 1,714
- Corporate units in the system
- % franchised
- 10%
- vs corporate-owned
- Net growth (yr3)
- +10.1%
- Net unit change last year
- 3-yr CAGR
- +11.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Hawaii
- Illinois
- Maryland
- Michigan
- New York
- Rhode Island
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 55
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Avis franchising presents high risk due to active consumer fraud litigation, undisclosed financial performance metrics, pattern of settlement-generating business practices, and unprotected territories that could undermine franchisee profitability.
Litigation (Item 3)
12 case reference(s): 2 pending, 1 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) has obtained a discharge of its debts under the U.S. Bankruptcy Code; or (c) was a principal officer of a company or a general partner -7- USA.571139189.13/RV2 in a partnership that either filed as a debtor (or had field against it) a petition to start an action under the U.S. B
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 40 / 100 rating
- 01HIGHActive litigation involving consumer fraud, deceptive counter sales practices, and contractor misclassification suggests systemic operational issues that could expose franchisees to legal liability
- 02MEDNo disclosed average revenue or net income data prevents accurate ROI calculation; combined with high investment range ($625.5K-$1.59M), franchisees cannot validate unit economics
- 03MEDMultiple concluded settlements for undisclosed surcharges, unwanted text messages, and administrative fees indicate pattern of problematic revenue collection practices that could damage franchisee reputation
- 04MINORUnprotected territory creates cannibalization risk in dense markets; with only 10.1% YoY unit growth and 1,900 locations, saturation concerns are legitimate
- 05MINORHigh 7.5% royalty on gross revenue (not net profit) compounds cash flow pressure, especially given industry's thin margins in car rental
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Geographic |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 21 |
View Item 3 litigation summary
12 case reference(s): 2 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Wizard
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Wizard
Item 20 · call current owners
Franchisee Contacts
112 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Avis · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Avis franchise?
The total investment to open a Avis franchise ranges from $626K – $1.6M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Avis franchise owners earn?
Avis does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Avis's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Avis (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Avis franchise locations are there?
As of their most recent FDD filing, Avis has 1,900 total units in the United States, including 167 franchised units and 1,714 company-owned units. 20 new units were opened in the latest reporting year.
Is Avis a good franchise to buy?
FranchiseVerdict rates Avis as a A-grade franchise with a risk score of 40 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.