Bottom line
- Total investment $879K – $16.2M including a $25K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 85/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- 30 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 Hertz unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees operate car rental locations under the Hertz brand, managing vehicle fleet acquisition, maintenance, customer service, and local marketing. Day-to-day activities include processing reservations, conducting vehicle inspections, handling damage claims, managing staff, and competing for corporate and walk-in customers.
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 · 36 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
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.
Score breakdown · what drove the 85 / 100 rating
- 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
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
69 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hertz · FDD (2026) PDF