How Much Does a Rent-A-Wreck Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$190K – $2.6M
Franchise Fee
$30K
Royalty
the greater of: (a) 4% of Gross Revenues received during the preceding month; and (b) the monthly minimum royalty ($800 - $2,400)
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Rent-A-Wreck 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 Rent-A-Wreck franchise requires a total investment of $190K – $2.6M. 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 $15K to $47K.
Ongoing Costs
Beyond the initial investment, Rent-A-Wreck franchisees pay ongoing fees. The royalty structure is: the greater of: (a) 4% of Gross Revenues received during the preceding month; and (b) the monthly minimum royalty ($800 - $2,400). The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $278.
Net Worth & Liquid Capital Requirements
Rent-A-Wreck requires working capital of $15K – $47K 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?
Rent-A-Wreck 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 Rent-A-Wreck?
SBA Loans Issued
3
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Rent-A-Wreck has 3 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. 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
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