Payless Car Rental Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Payless Car Rental is a value car-rental franchise serving budget-minded leisure and business travelers. Franchisees run rental locations managing the fleet, reservations, and counter operations.
FranchiseVerdict summary · 2026
A Payless Car Rental franchise requires a total initial investment of $626K – $1.6M, including a $45K franchise fee and an ongoing 7.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $626K – $1.6M
- 50th pct Automotive
- Avg gross sales
- N/A
- Royalty
- 7.5%
- 33rd pct Automotive
- Units
- 109
- 33rd 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 $626K – $1.6M including a $45K franchise fee, 7.5% ongoing royalty.
- RETURNSItem 21 exhibit (Exhibit G) presents the consolidated audited financial statements of Avis Budget Group, Inc. (the franchisor's parent/guarantor entity), fiscal years ended December 31, 2024 and 2023, audited by Deloitte & Touche LLP (PCAOB ID No. 34). Only three pages were provided (exhibit cover p116, index p117, and the first page of the Independent Auditor's Report p118). The actual financial statement schedules — Consolidated Statements of Operations (index p.6), Consolidated Balance Sheets (index p.8), and Stockholders' Equity (index p.11) — are NOT present in the supplied images, so no figures (assets, liabilities, net worth, revenue, net income) could be read. All numeric fields are null pending the missing statement pages.
- RISKVerdict F (Weakest tier), verdict score 28/100 (higher is better).
- DECLINESystem contracting at -50.0% 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
- Payless Car Rental System, Inc.
- Parent company
- Payless Car Rental, Inc. (PCR)
- Ultimate parent
- Avis Budget Group, Inc.
- Predecessor
- Payless Car Rental, Inc. (formerly Avalon Global Group, Inc.)
- Prior franchisor entity
- Incorporated in
- Florida
- HQ
- 379 Interpace Parkway, Parsippany, NJ 07054
- Auditor
- Not specified in text (ABG consolidated audited financials in Exhibit G)
- Audited financials
- Franchisor revenue
- $11.8B
- vs $12.0B prior year
Overview
About
- CEO
- Joseph A. Ferraro
- Headquarters
- NJ
- Founded
- 2001
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 19% above the typical automotive franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $55K | $72K |
| Equipment, build-out, other | $526K | $1.5M |
| Total initial investment | $626K | $1.6M |
Source: Payless Car Rental 2025 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
- $626K – $1.6M
- Middle of category vs category
- Liquid capital req'd
- $55K – $72K
- Middle of category vs category
- Franchise fee
- $45K
- Top 40% of category vs category
- Royalty
- 7.5%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Payless Car Rental 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 Payless Car Rental 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: 2025 FDD
Financial Performance
Item 21 exhibit (Exhibit G) presents the consolidated audited financial statements of Avis Budget Group, Inc. (the franchisor's parent/guarantor entity), fiscal years ended December 31, 2024 and 2023, audited by Deloitte & Touche LLP (PCAOB ID No. 34). Only three pages were provided (exhibit cover p116, index p117, and the first page of the Independent Auditor's Report p118). The actual financial statement schedules — Consolidated Statements of Operations (index p.6), Consolidated Balance Sheets (index p.8), and Stockholders' Equity (index p.11) — are NOT present in the supplied images, so no figures (assets, liabilities, net worth, revenue, net income) could be read. All numeric fields are null pending the missing statement pages.
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 7.5% — 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 contracting at -50.0% 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 Payless Car Rental Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 109
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 91.7%
- Company-owned
- 97
- Corporate units in the system
- % franchised
- 11%
- vs corporate-owned
- Net growth (3-yr)
- -50.0%
- Net unit change over 3 years
- 3-yr CAGR
- -50.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 11
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 11
- Reacquired (3yr)
- 2
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $1.1M
- Median loan
- $263K
- average
- Charge-off rate
- N/A
- limited sample (4 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
- 4
- 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
Payless Car Rental presents extreme risk due to going concern status, active fraud litigation, undisclosed unit economics, and a shrinking franchise system with no territorial protection.
Litigation (Item 3)
Multiple pending cases including class actions involving alleged fraudulent counter sales (Bacon), consumer fraud (Valli), shareholder derivative (De Angelis), and advertised pricing disputes (Travelers United). Several historical cases settled including Canadian Competition Bureau ($3.25M), Mendez e-toll ($9.4M total), Venerus ($33.95M available), and others.
Largest disclosed settlement: $33,956,613
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Not specified in text (ABG consolidated audited financials in Exhibit G)
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
Score breakdown · what drove the 28 / 100 verdict
- 01HIGHGoing concern status is FALSE — indicates financial instability at corporate level
- 02HIGHPending consumer fraud litigation involving counter sales, administrative fees, and pricing misrepresentation — suggests systemic operational issues
- 03HIGHHistory of concluded litigation on deceptive practices (fuel charges, tolls) and misclassification — pattern of legal exposure
- 04MEDNo disclosed average revenue or net income — inability or unwillingness to demonstrate unit economics
- 05MINORTerritory not protected — direct competition from other franchisees and corporate-owned locations possible
- 06MINORHigh investment range ($625.5K-$1.6M) with 7.5% royalty on unknown revenue base — ROI cannot be calculated
- 07MINOROnly 109 units with unknown growth trajectory — suggests stagnant or declining system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | Restricted |
| 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 | 4 |
View Item 3 litigation summary
Multiple pending cases including class actions involving alleged fraudulent counter sales (Bacon), consumer fraud (Valli), shareholder derivative (De Angelis), and advertised pricing disputes (Travelers United). Several historical cases settled including Canadian Competition Bureau ($3.25M), Mendez e-toll ($9.4M total), Venerus ($33.95M available), and others.
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 0 hrs
- Training location
- Workday Learning - Online Training (web-based)
- Ongoing training
- Required
- Site selection
- Franchisee selects site subject to Payless approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Wizard (operated by ABCR/Wizard Services, Inc.)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Wizard (operated by ABCR/Wizard Services, Inc.)
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Payless Car Rental · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Payless Car Rental franchise?
The total investment to open a Payless Car Rental franchise ranges from $626K – $1.6M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Payless Car Rental franchise owners earn?
Payless Car Rental 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 Payless Car Rental 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 Payless Car Rental FDD and qualifies whose outlets they describe.
What is Payless Car Rental's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Payless Car Rental (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 Payless Car Rental franchise locations are there?
As of their most recent FDD filing, Payless Car Rental has 109 total units in the United States, including 12 franchised units and 97 company-owned units.
Is Payless Car Rental a good franchise to buy?
FranchiseVerdict rates Payless Car Rental as a F-grade franchise with a verdict score of 28 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?
If you represent Payless Car Rental, you can request corrections or provide updated information.
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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.