Payless Car RentalFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Payless Car Rental franchise requires a total initial investment of $626K – $1.6M, including a $50K franchise fee and an ongoing 7.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $626K – $1.6M
- 40th pct Automotive
- Avg gross sales
- N/A
- 24th pct Automotive
- Royalty
- 7.5%
- 22nd pct Automotive
- Units
- 109
- 24th pct Automotive
- SBA default
- N/A
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 2001. Systems this mature have refined operations and brand recognition.
Franchised units fell from 24 to 12 over 3 years. Investigate why operators are leaving.
17 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $626K – $1.6M including a $50K franchise fee, 7.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 45/100.
- 17 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
- Legal entity
- Payless Car Rental System, Inc.
- Parent company
- Avis Budget Group, Inc.
- Incorporated in
- FL
- HQ
- 379 Interpace Parkway, Parsippany, NJ 07054
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $11.8B
- vs $12.0B prior year
Overview
About
Franchisees operate car rental locations managing vehicle fleet acquisition, maintenance, and customer reservations. Day-to-day operations include counter sales, damage assessments, fuel management, toll processing, and customer service while paying 7.5% royalties on gross revenue to the struggling franchisor.
- CEO
- Joseph A. Ferraro
- Headquarters
- NJ
- Founded
- 2001
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $55K | $72K |
| Equipment, build-out, other | $521K | $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
- Better than avg vs category
- Liquid capital req'd
- $55K – $72K
- Better than avg vs category
- Franchise fee
- $45K – $50K
- Better than avg vs category
- Royalty
- 7.5%
- percentage_of_gross · 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 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Automotive averages
How Payless Car Rental Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 109
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 97
- Corporate units in the system
- % franchised
- 11%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -50.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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.
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
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 45 / 100 rating
- 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
- 08MINORFranchise fee ($50K) relatively low compared to investment, suggesting franchisor dependent on royalties from struggling units
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Political boundaries or radius |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 180 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 17 |
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 0 hrs
- POS system
- Wizard System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Wizard System
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 $50K. 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 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 24 franchised units and 97 company-owned units.
Is Payless Car Rental a good franchise to buy?
FranchiseVerdict rates Payless Car Rental as a A-grade franchise with a risk score of 45 out of 100, 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.
Claim this brandOther Automotive franchises
Compare similar franchise opportunities in the Automotive category
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.