Budget Rent A Car Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Budget Rent A Car is a value-focused car-rental franchise serving leisure and business travelers. Franchisees operate rental locations managing the fleet, counter, reservations, and fuel and upsell revenue in a protected territory.
FranchiseVerdict summary · 2026
A Budget Rent A Car franchise requires a total initial investment of $606K – $1.6M, including a $25K franchise fee and an ongoing 7.5% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $606K – $1.6M
- 49th pct Automotive
- Avg gross sales
- N/A
- Royalty
- 7.5%
- 33rd pct Automotive
- Units
- 1,374
- 52nd 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 $606K – $1.6M including a $25K franchise fee, 7.5% ongoing royalty.
- RETURNSItem 21 financial statements are the audited consolidated financials of parent/guarantor Avis Budget Group, Inc. (not the franchisor BRACS standalone), as of Dec 31, 2023 and 2022. The numeric balance sheet and statement of operations tables did not extract as text in this file; only the auditor's report narrative is present. Deloitte & Touche LLP has served as auditor since 1997.
- RISKVerdict A (Strongest tier), verdict score 61/100 (higher is better).
- DECLINESystem contracting at -7.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Budget Rent A Car System, Inc.
- Parent company
- Avis Budget Car Rental, LLC
- Ultimate parent
- Avis Budget Group, Inc.
- Predecessor
- Budget Rent A Car Corporation
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer, Americas
- Joseph A. Ferraro
- 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
- CEO
- Joseph A. Ferraro
- Headquarters
- NJ
- Founded
- 2002
- FDD year
- 2024
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 16% above the typical automotive franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown12 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
- Middle of category vs category
- Liquid capital req'd
- $55K – $72K
- Middle of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 7.5%
- percentage · 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Budget Rent A Car did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Budget Rent A Car unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
11%
Below the 30–60% attractive-franchise band
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: 2024 FDD
Financial Performance
Item 21 financial statements are the audited consolidated financials of parent/guarantor Avis Budget Group, Inc. (not the franchisor BRACS standalone), as of Dec 31, 2023 and 2022. The numeric balance sheet and statement of operations tables did not extract as text in this file; only the auditor's report narrative is present. Deloitte & Touche LLP has served as auditor since 1997.
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 49.5% — above the Automotive average of 9.3%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -7.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Budget Rent A Car Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,374
- Opened
- 7
- Last reporting year
- Closed
- 15
- Turnover rate
- 8.5%
- Company-owned
- 1,197
- Corporate units in the system
- % franchised
- 13%
- vs corporate-owned
- Net growth (3-yr)
- -7.8%
- Net unit change over 3 years
- 3-yr CAGR
- -7.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 15
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 5
- 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
- N/A
- limited sample (5 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
- 5
- 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
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)
Two pending civil cases: (1) Bacon et al. v. Avis Budget Group/Payless Car Rental (D.N.J., 2016) - class action re fraudulent counter sales; (2) Valli v. Avis Budget Group (D.N.J., 2014) - class action re speeding violation fees/consumer fraud. One FTC Consent Order (Docket No. C-4212) effective until January 2, 2028 regarding fuel charge disclosures. Multiple concluded cases involving settlements.
Largest disclosed settlement: $33,956,613
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 61 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 49.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · 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 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 2 |
View Item 3 litigation summary
Two pending civil cases: (1) Bacon et al. v. Avis Budget Group/Payless Car Rental (D.N.J., 2016) - class action re fraudulent counter sales; (2) Valli v. Avis Budget Group (D.N.J., 2014) - class action re speeding violation fees/consumer fraud. One FTC Consent Order (Docket No. C-4212) effective until January 2, 2028 regarding fuel charge disclosures. Multiple concluded cases involving settlements.
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 0 hrs
- Training location
- Web-based (Workday Learning); on-the-job at franchisee location if required
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee with Budget 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
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 $25K. 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 Item 19 in the Budget Rent A Car 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 Budget Rent A Car FDD and qualifies whose outlets they describe.
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 177 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 A-grade franchise with a verdict score of 61 out of 100 (higher is better), 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.
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.