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Description
Investment Icon

What is the Initial Investment for an Avis Franchise?

To open an Avis franchise, you will need to prepare for a significant initial investment ranging from $605,500 to $1,568,400. This includes a franchise fee of $30,000, along with additional costs associated with setting up your location and operations. It's crucial to assess your financial readiness, as you'll also need to meet a net worth requirement of $1,000,000 to $2,500,000.

Fees Icon

What are the Ongoing Fees for an Avis Franchise?

As an Avis franchisee, you will be subject to ongoing fees that include a royalty fee of 7.5% of your revenue and a marketing fee of 15%. These fees are essential for maintaining brand presence and support, so it's important to factor them into your financial projections. Understanding these costs can help you better manage your cash flow and profitability over time.

Revenue Icon

What is the Average Revenue Potential for an Avis Franchise?

The average annual revenue per Avis franchise unit is approximately $1,000,000, with a median figure also reflecting this amount. However, revenues can vary significantly, with the lowest recorded at $150,000 and the highest at $1,000,000. This range highlights the importance of location, management, and market conditions in determining your franchise's financial success.

Breakeven Icon

What is the Breakeven Timeline for an Avis Franchise?

Franchisees can expect to reach breakeven within about 12 months of opening their Avis location. Moreover, the investment payback period is estimated at around 24 months. These timelines are critical for prospective franchisees to consider, as they indicate how quickly you might recover your initial investment and begin generating profit. Understanding these metrics can provide clarity on the financial viability of your franchise journey.

Avis Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$1,000,000 - $2,500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

7.5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

15%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$605,500 - $1,568,400
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$605,500 - $1,568,400
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$571,130
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,000,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$181,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$150,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Industrial Franchises
Category icon A more specific division within the broader industry.

i Category:

Equipment Rental
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Joseph A. Ferraro
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

6 Sylvan Way Parsippany, New Jersey 07054
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2006
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Avis Rent A Car System, LLC

Avis Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

1758
The number of locations owned by independent franchisees.

Franchised Units i

167
The number of locations owned and run by the franchisor.

Corporate Units i

1591
Units 2020 2021 2022
Total Units 1633 1700 1758
Net Change YoY 67 58
Franchised Units 177 161 167
Net Change YoY -16 6
Corporate Units 1456 1539 1591
Net Change YoY 83 52
Investment About

Franchise Overview

Avis is a globally recognized car rental brand that has been providing reliable transportation solutions for over 70 years. With a strong presence in both corporate and leisure travel markets, Avis aims to deliver exceptional customer service and a diverse fleet of vehicles. The franchise model allows aspiring entrepreneurs to tap into this well-established brand while benefiting from comprehensive support and training.

Potential About

Investment Requirements

To open an Avis franchise, the initial investment ranges from $605,500 to $1,568,400. This includes a franchise fee of $30,000. Franchisees are also expected to maintain a net worth between $1,000,000 and $2,500,000, ensuring that they have the financial stability to support their operations and growth.

Metrics About

Revenue Potential

Avis franchisees can expect average annual revenue of approximately $1,000,000 per unit, with the highest reported revenue reaching $1,181,000. This strong revenue potential reflects the brand's popularity and demand in the car rental industry, providing franchisees with a solid foundation for profitability.

Fees About

Ongoing Fees

Franchisees are required to pay a royalty fee of 7.5% on gross sales, along with a marketing fee of 15%. These fees contribute to the overall marketing efforts and operational support provided by Avis, ensuring franchisees benefit from brand recognition and customer loyalty.

Breakeven About

Operational Performance

Avis franchises typically experience a breakeven time of around 12 months, with an investment payback period of approximately 24 months. This timeline illustrates the potential for franchisees to recoup their initial investments relatively quickly, making it an attractive opportunity for those seeking a profitable business venture.

Units About

Franchise Growth

The Avis franchise network has shown steady growth, with 167 franchised units in 2022, down slightly from 177 in 2020. The total number of units, including corporate-owned locations, reached 1,758, highlighting the brand's ongoing expansion and commitment to providing quality car rental services across various markets.

Frequently Asked Questions

The initial investment for an Avis franchise ranges from $605,500 to $1,568,400, which includes the franchise fee of $30,000 and other startup costs.