Hertz Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hertz is a car-rental franchise operating rental locations under the Hertz brand. Franchisees manage a vehicle fleet, reservations, inspections, and staff, serving corporate and walk-in renters in their market.
FranchiseVerdict summary · 2026
A Hertz franchise requires a total initial investment of $879K – $16.2M, including a $25K – $500K franchise fee and an ongoing 7.0% royalty[2]. The 2026 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 2026 FDD issuance
Overview
- Investment
- $879K – $16.2M
- 53rd pct Automotive
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 27th pct Automotive
- Units
- 2,946
- 55th 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 $879K – $16.2M including a $25K franchise fee, 7.0% ongoing royalty.
- RETURNSAudited financial statements are those of the parent guarantor, The Hertz Corporation (consolidated), as franchisor Hertz System, Inc. does not present standalone statements. Figures in USD converted from millions; FYE Dec 31, 2025 (yr1) and Dec 31, 2024 (yr2). Net worth = total stockholder's equity (deficit) of $(243)M; the parent is in a stockholders' deficit position following Chapter 11 history.
- RISKVerdict A (Strongest tier), verdict score 65/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hertz System, Inc.
- Parent company
- The Hertz Corporation
- Ultimate parent
- Hertz Global Holdings, Inc.
- CEO title
- Chief Executive Officer – The Hertz Corporation
- Gil West
- Incorporated in
- DE
- HQ
- 8501 Williams Road, Estero, Florida 33928
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $8.5B
- vs $9.0B prior year
Affiliated brands
- Hertz International
- DTG Canada
- DTG Operations
- Dollar Thrifty Automotive Group Canada
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Gil West
- Headquarters
- FL
- Founded
- 1925
- FDD year
- 2026
- States available
- 37
Can you afford it, and what does the money buy?
Entry cost runs 815% above the typical automotive franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $834K | $16.2M |
| Total initial investment | $879K | $16.2M |
Source: Hertz 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $879K – $16.2M
- Middle of category vs category
- Liquid capital req'd
- $20K – $50K
- Top 40% of category vs category
- Franchise fee
- $25K – $500K
- Top 40% of category vs category
- Royalty
- 7.0%
- tiered · typical 6–8%
- Ad fund
- No current Program Assessment required for new franchisee…
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $53 |
| Renewal fee | $5K |
| Inventory (initial) | $750K – $15.0M |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Hertz 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 Hertz unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
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: 2026 FDD
Financial Performance
Audited financial statements are those of the parent guarantor, The Hertz Corporation (consolidated), as franchisor Hertz System, Inc. does not present standalone statements. Figures in USD converted from millions; FYE Dec 31, 2025 (yr1) and Dec 31, 2024 (yr2). Net worth = total stockholder's equity (deficit) of $(243)M; the parent is in a stockholders' deficit position following Chapter 11 history.
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 7.0% — below 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 roughly stable (+1.6% 3-year CAGR) with 2,946 units.
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 Hertz Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,946
- Opened
- 13
- Last reporting year
- Closed
- 23
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 17.4%
- Company-owned
- 2,556
- Corporate units in the system
- % franchised
- 13%
- vs corporate-owned
- Net growth (3-yr)
- +1.6%
- Net unit change over 3 years
- 3-yr CAGR
- +1.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 69
- Closed (3yr)
- 68
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 19
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 94.4%
- Units that stayed open
- Ceased ops
- 5.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $1.4M
- Median loan
- $1.4M
- 50th percentile
- Charge-off rate
- N/A
- limited sample (1 loan) — 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
- 1
- 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
Hertz represents extreme risk: a contracting franchise system with a distressed parent company, pervasive litigation, no territorial protection, undisclosed unit economics, and a going concern status that threatens franchisee viability.
Litigation (Item 3)
No pending or prior actions directly against Hertz System, Inc. as franchisor. Numerous cases involving parent The Hertz Corporation and affiliates, including class action settlements, franchise termination disputes, international subfranchisee trademark actions, and post-bankruptcy litigation. Largest settlement was $20 million (Moretti v. Hertz). Company emerged from Chapter 11 bankruptcy June 30, 2021.
Largest disclosed settlement: $20,000,000
Bankruptcy (Item 4)
Disclosed in last 7 years
On May 22, 2020, Hertz System, Inc., The Hertz Corporation, and certain U.S. and Canadian affiliates filed for Chapter 11 bankruptcy (Case No. 20-11240 for Hertz System, Inc.) in the U.S. Bankruptcy Court for the District of Delaware. Emerged from bankruptcy June 30, 2021.
Audited financials (Item 21)
Yes · Ernst & Young 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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 verdict
- 01HIGHGoing Concern status is False — indicates parent company financial distress or bankruptcy risk
- 02MINORUnit count declining 2.5% YoY (2,946 units) — contracting franchise system signals franchisee struggles
- 03HIGHExtensive litigation including bankruptcy claims, consumer protection violations, deceptive advertising, and securities cases — reputational and legal exposure
- 04MINORNo average revenue or net income disclosure — inability to validate ROI projections or franchisee profitability
- 05MINORHigh investment range ($879K–$16.2M) with no protected territory — franchisees compete directly with corporate and other franchisees in same market
- 06MINOR7–9% royalty on gross receipts (not net) — extracts fees regardless of profitability
- 07MINORShort 5-year term — insufficient time to recoup investment, especially in capital-intensive car rental
- 08MINORDeclining brand reputation due to multiple class actions and damage claim disputes — headwind for customer acquisition
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 180 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Florida (where franchisor's headquarters is located) |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 30 |
View Item 3 litigation summary
No pending or prior actions directly against Hertz System, Inc. as franchisor. Numerous cases involving parent The Hertz Corporation and affiliates, including class action settlements, franchise termination disputes, international subfranchisee trademark actions, and post-bankruptcy litigation. Largest settlement was $20 million (Moretti v. Hertz). Company emerged from Chapter 11 bankruptcy June 30, 2021.
Items 10, 11
Training & Operations
- Classroom training
- 62 hrs
- On-the-job training
- 8 hrs
- Training location
- Franchisor's Headquarters (Estero, FL), franchisee's designated location, or online
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve within 30 days
- Franchisor financing
- Not offered
- Item 10
- POS system
- Approved Counter Automation System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Approved Counter Automation System
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hertz · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hertz franchise?
The total investment to open a Hertz franchise ranges from $879K – $16.2M, 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 Hertz franchise owners earn?
Hertz 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 Hertz 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 Hertz FDD and qualifies whose outlets they describe.
What is Hertz's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hertz (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 Hertz franchise locations are there?
As of their most recent FDD filing, Hertz has 2,946 total units in the United States, including 390 franchised units and 2,556 company-owned units. 13 new units were opened in the latest reporting year.
Is Hertz a good franchise to buy?
FranchiseVerdict rates Hertz as a A-grade franchise with a verdict score of 65 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
Are you the franchisor?
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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.