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FranchiseVerdict

How Much Does a Budget Rent A Car Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$606K – $1.6M

Franchise Fee

$30K

Royalty

7.5%

Ad Fund

0.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Budget Rent A Car is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Budget Rent A Car franchise requires a total investment of $606K – $1.6M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $55K to $72K.

Ongoing Costs

Beyond the initial investment, Budget Rent A Car franchisees pay ongoing fees. The royalty fee is 7.5% of gross sales (Gross Revenue). The advertising or brand fund contribution is 0.0% of gross sales. There is also a technology fee of $42.

Net Worth & Liquid Capital Requirements

Budget Rent A Car requires working capital of $55K – $72K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Budget Rent A Car does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Budget Rent A Car?

SBA Loans Issued

5

Default Rate

20.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Budget Rent A Car has 5 SBA-backed loans on record. The default rate is 20.0%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current Budget Rent A Car franchise owners

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