Avis Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Avis is a car-rental franchise operating rental branches for business and leisure travelers. Franchisees manage a vehicle fleet, the rental counter, reservations, and staff within Avis brand standards.
FranchiseVerdict summary · 2026
A Avis franchise requires a total initial investment of $626K – $1.6M, including a $45K franchise fee and an ongoing 7.5% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $626K – $1.6M
- 50th pct Automotive
- Avg gross sales
- N/A
- Royalty
- 7.5%
- 37th pct Automotive
- Units
- 1,900
- 54th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $626K – $1.6M including a $45K franchise fee, 7.5% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 60/100 (higher is better).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Avis Rent A Car System, LLC
- Parent company
- Avis Budget Car Rental, LLC
- Ultimate parent
- Avis Budget Group, Inc.
- Predecessor
- Avis Rent A Car System, Inc. (ARACS)
- Prior franchisor entity
- 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
- CEO
- Joseph A. Ferraro
- Headquarters
- NJ
- Founded
- 1946
- FDD year
- 2025
- States available
- 22
Can you afford it, and what does the money buy?
Entry cost runs 26% above the typical automotive franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 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
- Middle of category vs category
- Liquid capital req'd
- $55K – $72K
- Middle of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 7.5%
- 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% |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Inventory (initial) | $500 – $2K |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Avis makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Avis unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.5% — below the Automotive average of 9.4%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 11.4% CAGR over 3 years across 1,900 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive averages
How Avis Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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 (3-yr)
- +11.4%
- Net unit change over 3 years
- 3-yr CAGR
- +11.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 20
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
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 loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $1.5M
- Median loan
- $170K
- average
- Charge-off rate
- N/A
- limited sample (9 loans) — rate not shown below 10
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
- 8
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
5 pending actions including class actions re fraudulent counter sales (Bacon v ABG), toll fee claims (Valli v ABG), shareholder derivative suit (De Angelis), and two Travelers United consumer fraud complaints. Several concluded matters resolved by settlement. FTC consent orders for Budget affiliate (fuel charges, damage disclosures).
Largest disclosed settlement: $6,700,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the audited consolidated statements of Avis Budget Group, Inc. (the parent/guarantor), not the franchisor entity Avis Rent A Car System, LLC. Audited by Deloitte & Touche LLP (New York, NY; auditor since 1997), opinion dated February 14, 2025, covering balance sheets as of Dec 31, 2024 and 2023. The numeric balance sheet and statement of operations tables (Exhibit G) are not present in the provided text extract, so dollar figures could not be extracted.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 60 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 25,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 180 days |
| Mandatory arbitration | No |
| Arbitration location | Delaware |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 5 |
View Item 3 litigation summary
5 pending actions including class actions re fraudulent counter sales (Bacon v ABG), toll fee claims (Valli v ABG), shareholder derivative suit (De Angelis), and two Travelers United consumer fraud complaints. Several concluded matters resolved by settlement. FTC consent orders for Budget affiliate (fuel charges, damage disclosures).
Items 10, 11
Training & Operations
- Classroom training
- 4436 hrs
- On-the-job training
- 0 hrs
- Training location
- Online (Workday Learning — web-based training)
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee, subject to Avis approval
- Franchisor financing
- Not 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 $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Avis franchise owners earn?
Avis makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Avis FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Avis FDD and qualifies whose outlets they describe.
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 186 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 B-grade franchise with a verdict score of 60 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.