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.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 55 loans (below the industry average).
- 21 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Avis unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 64 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
60 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Avis · FDD (2025) PDF