Hertz Franchise Cost, Revenue & Review 2026
- Investment
- $879K – $16.2M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
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]. 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 →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $879K – $16.2M
- 53rd pct Automotive
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 31st 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 median · 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.
- 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 66/100 (higher is better).
- GROWTHNegative: net -10 franchised outlets in the latest year (13 opened, 23 closed) (Item 20).
- 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
- FDD Item 1, page 14 of the 2026 FDD
- Ultimate parent
- Hertz Global Holdings, Inc.
- FDD Item 1, page 14 of the 2026 FDD
- 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).
Same owner · FDD Item 1, page 14
1 other brand on this site name Hertz Global Holdings, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 2227% 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 by sales volume · 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 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 Hertz 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, ad fund rate, 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: 2026 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 7.0% (near the Automotive median).
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 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 medians
How Hertz Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 0.8%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
3 current owners across 3 states; 1 former (terminated, transferred or not renewed) listed separately.
- AK 1
- MS 1
- SD 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- 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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 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)
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.
ⓘ 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 66 / 100 verdict
- 01MINORUnit count declining 2.5% YoY (2,946 units) — contracting franchise system signals franchisee struggles
- 02HIGHExtensive litigation including bankruptcy claims, consumer protection violations, deceptive advertising, and securities cases — reputational and legal exposure
- 03MINORNo average revenue or net income disclosure — inability to validate ROI projections or franchisee profitability
- 04MINORHigh investment range ($879K–$16.2M) with no protected territory — franchisees compete directly with corporate and other franchisees in same market
- 05MINOR7–9% royalty on gross receipts (not net) — extracts fees regardless of profitability
- 06MINORShort 5-year term — insufficient time to recoup investment, especially in capital-intensive car rental
- 07MINORDeclining 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 | No territory protection |
| 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
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 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.
Who owns Hertz?
Hertz is franchised by Hertz System, Inc.. Its parent company is The Hertz Corporation. The ultimate parent named in the FDD is Hertz Global Holdings, Inc.. Source: FDD Item 1, 2026 filing.
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 B-grade franchise with a verdict score of 66 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.