Rent-A-Wreck Franchise Cost, Revenue & Review 2026
- Investment
- $190K – $2.6M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 3.8%
- on 29 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Rent-A-Wreck is a budget car rental franchise renting reliable used and newer vehicles at value prices. Franchisees run local rental branches, managing fleet, bookings, and rental contracts.
FranchiseVerdict summary · 2026
A Rent-A-Wreck franchise requires a total initial investment of $190K – $2.6M, including a $25K – $125K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 3.8% charge-off rate across 29 loans[1]. 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 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $190K – $2.6M
- 26th pct Automotive
- Avg gross sales
- N/A
- Projection
- Royalty
- 4.0%
- 4th pct Automotive
- Units
- 48
- 21st pct Automotive
- SBA charge-off
- 3.8%
- % of SBA 7(a) loans not repaid · median varies by category
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 $190K – $2.6M including a $25K franchise fee, 4.0% ongoing royalty.
- RETURNSItem 19 discloses Average Monthly Revenue per Vehicle, Average Revenue per Day, Average Revenue per Closed Agreement, Average Utilization, and Average Length of Rental for the Corporate Store and 21 franchised locations (of 45 open all FY2025) reporting complete 12-month data; no gross sales or gross revenue dollar figures are disclosed.
- RISKVerdict B (Above average), verdict score 63/100 (higher is better). SBA loan charge-off rate of 3.8% across 29 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +2 franchised outlets in the latest year (2 opened, 0 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
- NPR Auto Group, LLC
- Parent company
- All Car Leasing, Inc.
- FDD Item 1, page 6 of the 2025 FDD
- Ultimate parent
- JJF Management Services, Inc.
- FDD Item 1, page 7 of the 2025 FDD
- Predecessor
- Bundy American, LLC (formerly Priceless Rent-A-Car, LLC / NP Franchise Group, LLC / NP Auto Group, Inc.)
- Prior franchisor entity
- CEO title
- President
- Michael DeLorenzo
- CEO experience
- 39 yrs
- Years in role or industry
- Incorporated in
- Maryland
- HQ
- 11411 Rockville Pike, Rockville, MD 20852
- Auditor
- Councilor, Buchanan & Mitchell, P.C.
- Audited financials
- Franchisor revenue
- $1.9M
- vs $2.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 7
2 other brands on this site name JJF Management Services, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 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
- Michael DeLorenzo
- Headquarters
- MD
- FDD year
- 2025
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 278% above the typical automotive franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $25K | $125K | |
| Initial Reservations Deposit | $750 | $25K | |
| Initial Customer Service Deposit | $750 | $3K | |
| Real Estate | $6K | $24K | |
| Leasehold Improvements | $2K | $12K | |
| Equipment, Fixtures, Furniture and Signs | $2K | $20K | |
| Rental Vehicles | $125K | $2.3M | |
| Training and Travel Expenses | $2K | $5K | |
| Computer Hardware | $4K | $16K | |
| Computer Software | $0 | $8K | |
| Additional Onsite Computer Software Training | $0 | $4K | |
| Opening Advertising, Deposits, and Miscellaneous Costs | $3K | $5K | |
| Vehicle Insurance | $5K | $50K | |
| Additional Funds - 3 months | $15K | $47K | |
| Total initial investment | $190K | $2.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $190K – $2.6M
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $47K
- Top 40% of category vs category
- Franchise fee
- $25K – $125K
- Top 40% of category vs category
- Royalty
- 4.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $278 |
| Transfer fee | $4K |
| Inventory (initial) | $125K – $2.3M |
| Total fee load | 5.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Rent-A-Wreck is on file. 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 Rent-A-Wreck 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, 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: 2025 FDD
Financial Performance
Item 19 discloses Average Monthly Revenue per Vehicle, Average Revenue per Day, Average Revenue per Closed Agreement, Average Utilization, and Average Length of Rental for the Corporate Store and 21 franchised locations (of 45 open all FY2025) reporting complete 12-month data; no gross sales or gross revenue dollar figures are disclosed.
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 5.0% — below the Automotive median of 8.0%.
Disclosure
Item 19 reports monthly revenue per vehicle rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -7.8% 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 medians
How Rent-A-Wreck 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- +4.4%
- Net unit change over 3 years
- 3-yr CAGR
- -7.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 6
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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
40 current owners across 18 states.
- NJ 12
- CA 4
- CT 2
- MD 2
- ME 2
- NC 2
- OH 2
- PA 2
- PR 2
- WA 2
- IL 1
- IN 1
- +6 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 29
- Loan volume
- $5.5M
- Median loan
- $517K
- 50th percentile
- Charge-off rate
- 3.8%
- on 29 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 96.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 25
- Defaults
- 1
- Typical loan rate
- 8.3%
- avg rate to borrowers
- Franchised industry avg
- 18.3%
- brand beats franchise avg ↓
- Jobs supported
- 21
- 1.3 per loan
- Lender concentration
- 33%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in passenger car rental, franchised businesses charge off at 18.3% vs 15.1% for independents — franchising is associated with 21% higher SBA default risk in this category.
Top lenders financing Rent-A-Wreck franchisees
Showing 3 of 25 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Rent-A-Wreck from SBA 7(a) FOIA data.
- Principal loss rate
- 0.6%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 8.30%
- Lender concentration
- 33.3%
- Job velocity
- 1.3 per $100K
- NAICS benchmark
- 28.6%
- NAICS 532111
- Jobs supported
- 21
Top SBA lendersTop lender holds 33% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Fifth Third Bank | 1 | $841K | 0.0% |
| 2 | Five Star Bank | 1 | $225K | 0.0% |
| 3 | Bank of Oak Ridge | 1 | $517K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NCNorth Carolina | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 3.8% — 76% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Small 48-unit system with a contempt finding against the franchisor ($83,440.80 awarded to Schwartz) from long-running litigation concluded 2019, and a predecessor/parent Chapter 11 bankruptcy (2017, dismissed 2018) whose officers still run the company. Net worth $2.1M and revenue $1.9M are modest; net unit growth is negative (-7.8%).
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
David Schwartz v. JJF Management Services, Inc., Rent-A-Wreck of America, Inc., and Bundy American, LLC. U.S. District Court for the District of Maryland. Dispute over wrongful franchise termination and exclusive territory rights. Multiple appeals and retrials. Final judgment in 2015 favored franchisor. Subsequent contempt finding in 2017 regarding reservation diversion.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Bundy American, LLC (franchisor's former parent, merged into franchisor in 2025 Corporate Reorganization) and Rent-A-Wreck of America, Inc. (Bundy American's parent) each filed Chapter 11 petitions on July 24, 2017 in the District of Delaware. Cases were dismissed on February 13, 2018. Priceless Rent-A-Car, LLC was not a debtor.
Audited financials (Item 21)
Yes · Councilor, Buchanan & Mitchell, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 63 / 100 verdict
- 01MEDPredecessor Bundy American/RAWA Chapter 11 filed 2017, dismissed 2018; current President and Treasurer were officers of those entities
- 02MINORContempt finding requiring $83,440.80 payment to franchisee Schwartz
- 03MINORNegative net growth -7.8% on a small 48-unit base
- 04MINORModest financials: net worth $2.1M, revenue $1.9M
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% 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
| Territory type | Protected territory |
|---|---|
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 80,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Termination groundsℹ | 14 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 1 |
View Item 3 litigation summary
David Schwartz v. JJF Management Services, Inc., Rent-A-Wreck of America, Inc., and Bundy American, LLC. U.S. District Court for the District of Maryland. Dispute over wrongful franchise termination and exclusive territory rights. Multiple appeals and retrials. Final judgment in 2015 favored franchisor. Subsequent contempt finding in 2017 regarding reservation diversion.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 7 hrs
- Training location
- On-site and franchisor location
- Ongoing training
- Optional
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- ASAP Computer System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ASAP Computer System
Item 20 · call current owners
Franchisee Contacts
41 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 Rent-A-Wreck franchise?
The total investment to open a Rent-A-Wreck franchise ranges from $190K – $2.6M, 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 Rent-A-Wreck franchise owners earn?
Item 19 of the Rent-A-Wreck FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Rent-A-Wreck?
Rent-A-Wreck is franchised by NPR Auto Group, LLC. Its parent company is All Car Leasing, Inc.. The ultimate parent named in the FDD is JJF Management Services, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Rent-A-Wreck 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 Rent-A-Wreck FDD and qualifies whose outlets they describe.
What is Rent-A-Wreck's franchise failure rate?
Based on SBA 7(a) loan data, Rent-A-Wreck has a charge-off rate of 3.8% across 29 loans, meaning 3.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Rent-A-Wreck franchise locations are there?
As of their most recent FDD filing, Rent-A-Wreck has 48 total units in the United States, including 47 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Rent-A-Wreck a good franchise to buy?
FranchiseVerdict rates Rent-A-Wreck as a B-grade franchise with a verdict score of 63 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.