Budget Rent A CarFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Budget Rent A Car franchise requires a total initial investment of $606K – $1.6M, including a $30K franchise fee and an ongoing 7.5% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $606K – $1.6M
- 39th pct Automotive
- Avg gross sales
- N/A
- 24th pct Automotive
- Royalty
- 7.5%
- 22nd pct Automotive
- Units
- 1,374
- 40th pct Automotive
- SBA default
- 20.0%
- system-wide median varies by category
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
Franchised units fell from 190 to 177 over 3 years. Investigate why operators are leaving.
15 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 $606K – $1.6M including a $30K franchise fee, 7.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 96/100.
- 15 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
- Legal entity
- Budget Rent A Car System, Inc.
- Parent company
- Avis Budget Group, Inc.
- Predecessor
- agreed to strongly urge its franchisees to comply with the terms of the Settlement
- 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 $12.0B prior year
Affiliated brands
- of the Predecessor
- that offers and supports franchises for
- Wizard
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Budget franchisees operate car rental locations serving leisure and business travelers. Day-to-day responsibilities include vehicle fleet management, customer check-in/check-out, damage assessment, invoicing, fuel upselling, and coordination with the corporate reservation system. Franchisees must manage local marketing, staffing, facility maintenance, and compliance with corporate operating standards across a protected territory.
- CEO
- Joseph A. Ferraro
- Headquarters
- NJ
- Founded
- 2002
- FDD year
- 2024
- States available
- 31
FDD Item 7 · 2024 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial License Purchase Feenot refundable | $30K | $30K | |
| 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 | $3K | $8K | |
| Additional funds - three months | $55K | $72K | |
| Total initial investment | $606K | $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
- $606K – $1.6M
- Better than avg vs category
- Liquid capital req'd
- $55K – $72K
- Better than avg vs category
- Franchise fee
- $25K – $30K
- Better than avg vs category
- Royalty
- 7.5%
- Gross Revenue · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 49.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $42 |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Total fee load | 49.5% 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 Budget Rent A Car Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,374
- Opened
- 7
- Last reporting year
- Closed
- 15
- Turnover rate
- 1.1%
- Company-owned
- 1,197
- Corporate units in the system
- % franchised
- 13%
- vs corporate-owned
- Net growth (yr3)
- -6.8%
- Net unit change last year
- 3-yr CAGR
- -7.8%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 6
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 89.8%
- Units that stayed open
- Ceased ops
- 8.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 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
- Michigan
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 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $1.7M
- Median loan
- $400K
- 50th percentile
- Charge-off rate
- 20.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 80.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Budget Rent A Car's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 5-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Budget Rent A Car presents high risk due to a contracting franchise system, multiple active litigation exposures including consumer fraud class actions, FTC regulatory violations, and complete absence of financial disclosure—making ROI validation impossible before substantial capital commitment.
Litigation (Item 3)
12 case reference(s): 1 pending, 2 settled.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
None disclosed
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 96 / 100 rating
- 01MINORDeclining unit count (-6.8% YoY) signals system contraction and reduced franchisee support infrastructure
- 02HIGHMultiple pending class actions for consumer fraud and deceptive practices indicate systemic operational or marketing issues
- 03MINORTwo FTC consent orders on fuel charges and damage disclosure suggest repeated regulatory violations and compliance failures
- 04MINORNo Item 19 financial performance disclosure prevents validation of claimed profitability and revenue potential
- 05MINORHigh initial investment ($605K-$1.57M) combined with 7.5% royalty creates significant fixed cost burden with unproven returns
- 06HIGHLabor law litigation and contractor misclassification claims suggest HR/compliance risk for franchisees
- 07MINORShrinking system with declining units reduces brand value, reservation volume, and corporate support resources
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 | Geographical Area |
| Protected territory | Yes |
| Territory population | 25,000 |
| 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 | 15 |
View Item 3 litigation summary
12 case reference(s): 1 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and at franchisor location
- Site selection
- franchisor
- 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
154 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Budget Rent A Car · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Budget Rent A Car franchise?
The total investment to open a Budget Rent A Car franchise ranges from $606K – $1.6M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Budget Rent A Car franchise owners earn?
Budget Rent A Car 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 Budget Rent A Car's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Budget Rent A Car (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 Budget Rent A Car franchise locations are there?
As of their most recent FDD filing, Budget Rent A Car has 1,374 total units in the United States, including 190 franchised units and 1,197 company-owned units. 7 new units were opened in the latest reporting year.
Is Budget Rent A Car a good franchise to buy?
FranchiseVerdict rates Budget Rent A Car as a F-grade franchise with a risk score of 96 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.